MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  JULY 22, 2015 (REPORT 29)

WEST BUTTER

Western butter demand has remained steady. Manufacturers report easily 
meeting customer demand with their current inventories or new 
production. Some butter makers are adjusting production schedules in 
order to maintain inventories. With strong ice cream production 
creating a heavy demand for cream, manufacturers have the opportunity 
to sell cream in lieu of churning. Some butter makers say it is 
currently more economically advantageous to sell the cream than churn. 
The DMN National Retail Report - Dairy for the week July 17 - 23, 
found that the U.S. weighted average advertised price of 1 pound 
butter is $3.26, up $.24 from one week ago and up $.22 from one year 
ago. In the Southwest, the weighted average advertised price for 1 
pound butter was $3.01 with a price range of $2.49 - $3.48, and in the 
Northwest, $3.46 with a price range of $2.50 - $3.99. 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 NASS Cold Storage report noted U.S. butter stocks as of June 
30, 2015, were 254.7 million pounds, an increase of 28% or 55.4 
million pounds, compared to a year ago. This is a decrease of 4% or 
10.1 million pounds, compared to a month ago. The Grade AA butter 
price at the CME Group on Wednesday closed at $1.8750, up $.0225 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