MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  September 2, 2015 (REPORT 35)

WEST BUTTER

While butter prices are moving higher at the CME Group, industry 
contacts suggest buyers are becoming more active as the Q4 holidays 
draw nearer. Retail demand for butter has been strong this summer and 
is expected to increase throughout the fall. Some western butter 
manufacturers are focusing on print butter to meet this demand. 
Production continues to be dictated by cream availability. Demand for 
cream has softened slightly with the decrease in ice cream production, 
but the demand is such that some processors still find it more 
economical to sell the cream than to churn. Other butter makers are 
actively seeking out available cream. Inventories tend to be long, but 
some processors describe them as comfortable. The DMN National Retail 
Report - Dairy for the week of August 28 - September 4, found that the 
U.S. weighted average advertised price of 1 pound butter is $3.16, up 
$.18 from one week ago but down $.20 from one year ago. In the 
Southwest, the weighted average advertised price for 1 pound butter 
was $3.26 with a price range of $2.79 - $3.99, and in the Northwest, 
$3.63 with a price range of $3.50 - $3.99. Bulk butter pricing in the 
West 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 $2.4200, up $.1275 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