MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  JUNE 03, 2015 (REPORT 22)

WEST BUTTER:

Western butter manufacturers continue to focus processing on current 
customer needs and the maintenance of inventories.  Additional milk 
made available for processing as school terms end has allowed some 
butter makers to keep steady productions schedules.  Other processors 
have started their regular repair and maintenance programs.  Increased 
ice cream demand is pulling some cream away from butter production.  
Market participants suggest limited export opportunities and available 
imports will continue to present market challenges for U.S. butter.  
The DMN National Retail Report - Dairy for the week May 29 - June 4, 
found that the U.S. weighted average advertised price of 1# butter is 
$3.18, up $.41 from one week ago and up $.04 from one year ago.  In 
the Southwest the weighted average advertised price for 1# butter was 
$3.30 with a price range of $1.99-$3.69, and in the Northwest, $3.57 
with a price range of $3.29-$3.99.  Dairy Products (NASS) reports U.S. 
butter production during April 2015, 164.8 million pounds, was 1.7% 
lower than April last year. U.S. cumulative 2015 butter production 
through April was 2.8% lower than the same period last year.  In the 
West, total April butter production was 3.3% lower than April last 
year.  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 CME Group May 2015 monthly average 
price for AA butter, $1.9309, is up $.1372 from April but down $.2404 
from May one year ago.  The Grade AA butter price at the CME Group on 
Wednesday closed at $1.9375, up $.0675 from a week ago.


      2015 U.S. Butter and Milkfat Exports (USDA-FAS)
                 
                    (Million Lb.)     % Change From
                                      1 Year Ago
                              
April                   5.4             -   72

Total Jan. - Apr.      22.5             -   75
   1 Saudi Arabia       8.1             -   62
   2 Mexico             5.6             +   57
   3 Canada             1.8             -    6
   4 South Korea        1.6             +    4
   5 Iran               1.2             -   83 

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