MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  December 16, 2015 (REPORT 50)

WEST BUTTER

Much of the holiday butter business has passed. With the recent large decrease in the 
butter price at the CME Group, a few last minute shoppers are rushing to fill remaining 
orders and purchased loads on the exchange. Meanwhile, some butter makers say domestic 
butter demand has died off and inventories are starting to build. Cream is more 
available, but manufacturers are not as interested in pursuing spot loads to churn. 
Instead, most processors are content to only churn the cream that they already possess. 
Some western butter contacts are shifting from print to bulk butter production. The DMN 
National Retail Report-Dairy for the week of December 11-17 found that the U.S. weighted 
average advertised price of 1 pound butter is $3.19, down $.10 from one week ago and down 
$.13 from one year ago. In the Southwest, the weighted average advertised price for 1 
pound butter was $3.38 with a price range of $1.69-$4.99, and in the Northwest, $3.15 
with a price range of $2.50-$3.99. 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 Grade AA butter price at the CME Group on Wednesday closed at $2.0775, 
down $.7125 from a week ago.

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

November Quota Imports	  1.1			+  24.1		 6.9

JAN - NOV  
    High Tier		 20.8			+ 241.1		...
    Quota Imports		 14.5			+   5.2		94.0


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