MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  December 9, 2015 (REPORT 49)

WEST BUTTER

Western butter makers are still buying a few spot loads of cream to keep production runs 
full. Cream is now more available, even though consumer demand for butterfat remains 
strong across a variety of dairy products. Production for Q4 butter sales is wrapping up. 
Manufacturers note domestic retail demand and market pricing for butter have extended 
late into the season. Many processors say their butter stocks are committed and spot 
butter loads are not readily available. The DMN National Retail Report-Dairy for the week 
of December 4-10 found that the U.S. weighted average advertised price of 1 pound butter 
is $3.29, up $.45 from one week ago and up $.01 from one year ago. In the Southwest, the 
weighted average advertised price for 1 pound butter was $3.62 with a price range of 
$3.29-$3.99, and in the Northwest, $3.88 with a price range of $3.50-$4.49. This week, a 
cooperative export assistance program accepted requests for 176 thousand pounds of 
butter. Dairy Products (NASS) reports U.S. butter production during October 2015, 147.5 
million pounds, was 1.7% lower than October last year, but 9.4% higher than September 
2015. U.S. cumulative 2015 butter production through October was 1.4% lower than the same 
period last year. In the West, total October butter production was 1.5% higher than last 
year. California October production was 9.0% lower than last year. According to the 
California Department of Food and Agriculture, year to date California butter production 
through October is down 5.9% from a year ago. Bulk butter pricing in the West this week 
is 4 cents under market to 4 cents above, based on the CME Group with various time frames 
and averages used. The CME Group November 2015 monthly average price for AA butter, 
$2.8779, is up from the October monthly average of $2.4757, and up from the November 2014 
monthly average of $1.9968. The Grade AA butter price at the CME Group on Wednesday 
closed at $2.7900, down $.1150 from a week ago.

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

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

October Total         2.0             - 57

TOTAL, JAN - OCT     44.0             - 69

 1 Saudi Arabia      16.6             - 48
 2 Mexico             8.5             + 5
 3 Canada             5.5             + 2
 4 South Korea        2.9             - 13
 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