MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  September 30, 2015 (REPORT 39)

WEST BUTTER

Although the recent price spike and decline for butter at the CME Group may 
have temporarily scared off a few buyers, active butter demand from retailers 
continues to push production and draw butter out of inventory. Some butter 
makers report full production schedules to stay ahead of the call for Q4 
retail butter. Other processors are content to work into their inventories 
and sell available cream. Most of the production emphasis has been on print 
butter as manufacturers prepare for the upcoming holiday home baking season. 
As a result, some industry contacts note a little tightness for bulk butter 
supplies. The DMN National Retail Report - Dairy for the week of September 25 
- October 1, found that the U.S. weighted average advertised price of 1 pound 
butter is $3.24, down $.16 from one week ago and down $.18 from one year ago. 
In the Southwest, the weighted average advertised price for 1 pound butter 
was $3.69 with no reported variance, and in the Northwest, $2.95 with a price 
range of $2.29 - $3.99. Bulk butter pricing in the West this week is 4 cents 
under market to 3 cents above, based on the CME Group with various time 
frames and averages used. Last Friday the CME butter price reached a new high 
of $3.1350, and then declined $.6250 over the next three trading sessions. 
The Grade AA butter price at the CME Group on Wednesday closed at $2.5100, 
down $.5150 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