MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  December 2, 2015 (REPORT 48)

WEST BUTTER

Western butter makers are actively churning to meet the strong seasonal demand 
for butter and to fill any remaining commitments before the end of the year. The 
heavy pull for milk fats has pushed some processors into seeking out additional 
spot loads of cream. Cream is moving within the region to keep production 
schedules full at butter facilities. A few manufacturers are beginning to shift 
production from print to bulk as the window to meet holiday print shipments 
narrows. Buyers, seeing the holiday draw nearer, are trying to balance their 
concerns between not being able to get butter needed for orders versus being 
caught on the wrong side of any price correction. In many cases, buyers have 
adjusted their purchasing to meet only immediate needs. The DMN National Retail 
Report-Dairy for the week of November 27-December 3 found that the U.S. weighted 
average advertised price of 1 pound butter is $2.84, up $.02 from one week ago, 
but down $.44 from one year ago. In the Southwest, the weighted average 
advertised price for 1 pound butter was $3.00 with a price range of $2.50-$3.99, 
and in the Northwest, $2.67 with a price range of $1.99-$3.99. Bulk butter 
pricing in the West this week is 4 cents under market to 2 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 $2.9050, up $.0050 from a week ago.

Dairy Market News Reporting Change Notice
Upon the conclusion of the October 2015 industry comment period and a review of 
industry responses, Dairy Market News (DMN) is updating the Dairy Market News 
Working Guidelines, effective Report 1, January 2016. The updates will 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. 

Link to current and updated DMN working guidelines:
http://www.ams.usda.gov/market-news/individual-dairy-market-news-commodity-reports

December 1, 2015


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