MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  AUGUST 5, 2015 (REPORT 31)

WEST BUTTER

Western butter manufacturers continue to weigh the decision between 
churning and selling spot loads of cream. Demand for cream has been 
strong for a number of months and some market participants are 
wondering when it may decrease. Domestic consumer demand for butter 
has been strong. Cumulative butter production is down. Some industry 
contacts suggest the combination of strong demand and lower production 
has helped keep prices up at the CME Group. The DMN National Retail 
Report - Dairy for the week July 31- August 6, found that the U.S. 
weighted average advertised price of 1 pound butter is $3.36, up $.07 
from one week ago but down $.13 from one year ago. In the Southwest, 
the weighted average advertised price for 1 pound butter was $3.50 
with a price range of $1.99 - $5.49, and in the Northwest, $3.25 with 
a price range of $2.49 - $3.99. Dairy Products (NASS) reports U.S. 
butter production during June 2015, 142.8 million pounds, was 1.7% 
higher than June last year but 15.9% lower than May 2015. U.S. 
cumulative 2015 butter production through June was 1.4% lower than the 
same period last year. In the West, total June butter production was 
2.5% higher than June 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 July 2015 
monthly average price for AA butter, $1.9056, is down $.0009 from June 
and down $.5568 from July one year ago. The Grade AA butter price at 
the CME Group on Wednesday closed at $1.9900, up $.0825 from a week 
ago.

1530CT mike.bandli@ams.usda.gov 608.557.7010
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home