MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  September 9, 2015 (REPORT 36)

WEST BUTTER

West butter production is steady and still somewhat dictated by the 
availability of or demand for cream. Butter demand has been firm. Recent 
press announcements and study releases have further bolstered demand for 
butter and milk fats. Some market participants point to the increase in 
positive press and greater interest in using butter by food manufacturers as 
a reason market prices at the CME Group have risen over the last few weeks. 
In addition, the seasonal baking time is starting and will continue through 
the end of the year. Some concern over rising butter prices have prompted 
buyers to make purchases early to lock in their costs. Industry contacts 
state butter manufacturers are willing to hold onto butter in advance of 
anticipated stronger demand in Q4. The DMN National Retail Report - Dairy for 
the week of September 4 - 10, found that the U.S. weighted average advertised 
price of 1 pound butter is $2.95, down $.21 from one week ago and down $.64 
from one year ago. In the Southwest, the weighted average advertised price 
for 1 pound butter was $3.20 with a price range of $2.50 - $3.99, and in the 
Northwest, $3.30 with a price range of $2.50 - $3.99. Dairy Products (NASS) 
reports U.S. butter production during July 2015, 133.3 million pounds, was 
3.2% lower than July last year and 6.2% lower than June 2015. U.S. cumulative 
2015 butter production through July was 1.7% lower than the same period last 
year. In the West, total July butter production was 1.9% lower than July 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 August 2015 monthly average price for AA butter, $2.1542, 
is up from the July monthly average of $1.9056, but down from the August 2014 
monthly average of $2.5913. The Grade AA butter price at the CME Group on 
Wednesday closed at $2.4725, up $.0525 from a week ago.

2015 U.S. Butter and Milkfat Exports (USDA-FAS)

        2015 Exports	% Change From 
       (Million Lb.)	 1 Year Ago

July Total			 5.0			 - 58

TOTAL, JAN - JULY		 35.1			 - 72

1 Saudi Arabia		 12.9			 - 58
2 Mexico			 7.3			 + 27 
3 Canada			 4.0			 - 13
4 South Korea		 2.6			 - 8
5 Iran			 1.2			 - 88

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