MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  May 27, 2015 (REPORT 21)

WEST BUTTER:

Western butter production was steady this week.  Industry contacts 
report milk and cream are generally available.  The recent holiday 
weekend helped ease the short supply of cream in Parts of the West 
where it had been tight.  Some manufacturers continue to sell excess 
cream for use in ice cream or other products. Marketers are suggesting 
there is plenty of butter available on the market and inventories have 
increased significantly over the last few months.  Without increased 
export opportunities and reports of some imports, there is little 
upward pressure for butter prices in the near future.  There have been 
some reports of butter makers slowing or suspending production in the 
coming weeks to better manage inventories.  The DMN National Retail 
Report - Dairy for the week May 22 - 28, found that the U.S. weighted 
average advertised price of 1# butter is $2.77, down $.12 from one 
week ago but up $.05 from one year ago.  Retail prices for 1# butter 
in the Southwest have a weighted average advertised price of $3.49, 
and in the Northwest, $2.74 with a price range of $1.99-$3.50.  The 
NASS Cold Storage report noted U.S. butter stocks as of April 30, 2015 
were 230.4 million pounds, an increase of 25% or 46.1 million pounds 
from a month ago, and an increase of 23% or 43.5 million pounds 
compared to a 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 $1.8700, down $.0600 from a week 
ago.

1530CT 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