MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  November 18, 2015 (REPORT 46)

WEST BUTTER

West butter manufacturers are using several different strategies to handle available 
cream. A few processors are opting to sell the cream in lieu of churning butter. Others 
are seeking additional loads of cream to boost butter production. A number of processors 
say their butter inventories are committed for the rest of the year. Most of the 
Thanksgiving butter demand has passed. Buyers have cooled to current pricing and are 
buying to fill immediate needs only. Many contacts anticipate a price correction before 
the end of the year. The DMN National Retail Report-Dairy for the week of November 13-19, 
found that the U.S. weighted average advertised price of 1 pound butter is $2.85, down 
$.23 from one week ago and down $.78 from one year ago. In the Southwest, the weighted 
average advertised price for 1 pound butter was $3.06 with a price range of $1.99-$3.99, 
and in the Northwest, $3.35 with a price range of $2.99-$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. The Grade AA butter price at the CME Group on 
Wednesday closed at $2.8850, unchanged from a week ago.


       2015 U.S. Butter Imports (USDA-FAS)
                  (Million Lb.)       % Change From   % of 
                                      1 Year Ago      Yearly Quota

Oct Quota Imports    1.0              +  46.8              6.6

Jan - Oct  
High Tier           16.6              + 283.9             N.A.
Quota Imports       13.4              +   4.0             87.1


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