MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  October 28, 2015 (REPORT 43)

WEST BUTTER

Western butter makers report a continuation of strong domestic demand. Butter production 
is active, but is currently lagging behind demand. Processors are working into butter 
inventories. Some processors suggest their cream supplies are well balanced and are not 
actively buying additional cream. Other butter processors are seeking spot loads of cream 
to round out production. According to the California Department of Food and Agriculture, 
year to date California butter production through September is down 5.6% from a year ago. 
The DMN National Retail Report - Dairy for the week of October 23 - 29, found that the 
U.S. weighted average advertised price of 1 pound butter is $3.35, up $.10 from one week 
ago but down $.85 from one year ago. In the Southwest, the weighted average advertised 
price for 1 pound butter was $3.41 with a price range of $2.88 - $4.28, and in the 
Northwest, $3.52 with a price range of $2.99 - $3.99. The NASS Cold Storage report noted 
U.S. butter stocks as of September 30, 2015, were 187.5 million pounds, down 12% from 
last month. Butter stocks were 152.4 million pounds last year at this time. 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. The Grade AA butter price at the CME 
Group on Wednesday closed at $2.6400, up $.2200 from a week ago.

Dairy Market News Reporting Changes Proposal
Dairy Market News (DMN) is proposing updating the Dairy Market News Working Guidelines. 
This proposal is the result of an industry comment period. The updates would allow DMN 
market reports to additionally include information and sales prices reported by 
individuals and firms functioning as marketing agents selling on the behalf of dairy 
product manufacturers. The Working Guidelines updates are intended to capture more 
information on pricing and market conditions and reflect the evolution of the marketing 
of dairy products. Currently, market pricing information is collected for first sale, 
f.o.b. producers' plants or warehouses. The changes would be effective starting with 
Report 1, January 2016.

Comment by October 30, 2015 to: DMN@ams.usda.gov
Link to current DMN working guidelines:
http://www.ams.usda.gov/market-news/individual-dairy-market-news-commodity-reports


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