MD_DA440  
DA                                                         
MD DA440 BUTTER - WEST                           

MADISON, WI.  May 6, 2015 (REPORT 18)
 
WEST BUTTER:

Butter manufacturing remains a mixed picture in the West. Cream 
availability appears to be long in some areas, and tight in 
others.  Some plants have eased back on their butter production 
and are now selling more cream.  Plants that are actively 
seeking cream for butter production are finding cream supplies 
to be tight. In some cases, competition from ice cream 
production or transportation costs limit the ability of butter 
manufacturers to purchase cream from other parts of the region.  
As a result, plants that produce bulk and print butter have 
close to a 50/50 split between bulk versus print production. The 
National Retail Report - Dairy for the week May 1 - 7, found 
that the U.S. weighted average advertised price of 1# butter is 
$3.39,  $.53 above the price one week ago and $.48 above one 
year ago.  Retail prices for 1# butter in the Southwest have a 
weighted average advertised price of $3.58 with a price range 
$3.48-$3.99, and in the Northwest, $3.36 with a price range of 
$2.99-$3.50.  Dairy Products (NASS) reports total 2015 U.S. 
butter production during March 2015, 161.7 million pounds, was 
3.0% lower than March last year. U.S. Cumulative 2015 butter 
production through March was 3.7% lower than the same period 
last year.  In the West, total March butter production was 5.8% 
lower than March last year.  The CME Group April 2015 monthly 
average price for AA butter, $1.7937, is up $.0771 from March 
and down $.1420 from April one year ago.  Bulk butter pricing in 
the West this week is 4 cents under market to 5 cents above, 
based on the CME Group with various time frames and averages 
used.  The Grade AA butter price at the CME Group on Wednesday 
closed at $1.8900, up $.0400 from a week ago.


1530CT eric.graf@ams.usda.gov 608.557.7005 and 
mike.bandli@ams.usda.gov 608.557.7010
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home