MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  JULY 08, 2015 (REPORT 27)

WEST BUTTER

Butter makers report steady to lower current production levels. Processors 
suggest they were able to place some butter into inventory earlier this 
spring.  These stocks are supporting current summer contracts.  Demand for 
butter has remained steady. Processors plan to increase production later this 
summer as inventories are drawn down through regular customer purchases. 
Industry contacts are seeing an increase in demand for cream. Those butter 
producers that are able, are selling the cream to ice cream and other product 
manufacturers. The DMN National Retail Report - Dairy for the week July 3 - 
9, found that the U.S. weighted average advertised price of 1 pound butter is 
$3.04, down $.38 from one week ago and down $.47 from one year ago. In the 
Southwest, the weighted average advertised price for 1 pound butter was $2.63 
with a price range of $1.99 - $3.49, and in the Northwest, $3.63 with a price 
range of $2.50 - $3.99. Dairy Products (NASS) reports U.S. butter production 
during May 2015, 169.5 million pounds, was 1.9% higher than May last year and 
3.2% higher than April 2015. U.S. cumulative 2015 butter production through 
May was 2.0% lower than the same period last year. In the West, total May 
butter production was 4.2% higher than May 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 June 2015 
monthly average price for AA butter, $1.9065, is down $.0244 from May and 
down $.3565 from June one year ago. The Grade AA butter price at the CME 
Group on Wednesday closed at $1.9200, down $.0100 from a week ago.


2015 U.S. Butter and Milkfat Exports (USDA-FAS)
                    (Million Lb.)     % Change From
                                      1 Year Ago
                              
May                     3.5             -   71

Total Jan. - May       26.0             -   74
   1 Saudi Arabia       9.1             -   63
   2 Mexico             6.5             +   48
   3 Canada             2.0             -   28
   4 South Korea        1.9            -    18
   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