MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  November 4, 2015 (REPORT 44)

WEST BUTTER

Western butter production remains active. A few manufacturers report they are near or at 
capacity. Cream supplies are tight as some butter makers seek extra loads to make print 
butter for the remaining seasonal orders. Some processors are microfixing to meet the 
seasonal demand. A number of manufacturers report current butter inventories are tight. 
Domestic pull has been strong, but as the peak butter season passes, some industry 
contacts are asking when the demand will be satisfied and an adjustment in price will 
follow. The DMN National Retail Report - Dairy for the week of October 30 - November 5, 
found that the U.S. weighted average advertised price of 1 pound butter is $3.51, up $.16 
from one week ago but down $.31 from one year ago. In the Southwest, the weighted average 
advertised price for 1 pound butter was $4.89 with a price range of $4.28 - $5.49, and in 
the Northwest, $3.18 with a price range of $3.00 - $3.50. Dairy Products (NASS) reports 
U.S. butter production during September 2015, 134.0 million pounds, was 0.9% higher than 
September last year and 4.3% higher than August 2015. U.S. cumulative 2015 butter 
production through September was 1.4% lower than the same period last year. In the West, 
total September butter production was 4.4% higher than last year. California September 
production was 6.8% lower than last year. 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 CME Group October 2015 monthly average price for AA butter, $2.4757, 
is down from the September monthly average of $2.6690, but up from the October 2014 
monthly average of $2.3184. The Grade AA butter price at the CME Group on Wednesday 
closed at $2.8750, up $.2350 from a week ago.

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

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

September Total       1.6             - 70

TOTAL, JAN - SEP     42.0             - 70

 1 Saudi Arabia      16.6             - 48
 2 Mexico             7.8             + 13
 3 Canada             5.0             - 3
 4 South Korea        2.8             - 10
 5 Iran               1.2             - 92


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