MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  January 6, 2015 (REPORT 1)

WEST BUTTER

Western butter makers are feeling less urgency to make butter this week now that the 
major winter holidays have passed. Production is still active, but has slowed to match 
the reduced, post-holiday, domestic butter demand. Cream supplies are down a little. 
Butter makers are willing to use internal cream supplies for churning, but are hesitant 
to seek out additional cream. Butter production is mostly focused on bulk with some 
retail print butter produced for immediate needs. Inventories are slowly rebuilding 
following the peak demand last month. The DMN National Retail Report-Dairy for the week 
of January 1-7 found that the U.S. weighted average advertised price of 1 pound butter is 
$3.00, down $.03 from one week ago and down $.06 from one year ago. There were no retail 
prices reported for surveyed stores in either the Northwest or Southwest this week. 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. Dairy Products (NASS) reports 
U.S. butter production during November 2015, 150.8 million pounds, was 4.4% higher than 
November last year, and 2.2% higher than October 2015. U.S. cumulative 2015 butter 
production through November is 1.671 billion pounds, 0.9% lower than the same period last 
year. In the West, total November butter production was 76.8 million pounds, 8.2% higher 
than last year. California November production was 45.5 million pounds, 3.9% lower than 
last year. According to the California Department of Food and Agriculture, year to date 
California butter production through November is 529.1 million pounds, down 5.7% from a 
year ago. The CME Group December 2015 monthly average price for AA butter, $2.3318, is 
down from the November monthly average of $2.8779, but up from the December 2014 monthly 
average of $1.7633. The Grade AA butter price at the CME Group on Wednesday closed at 
$2.0375, down $.0275 from a week ago.

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

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

November Total        2.8             - 56

TOTAL, JAN - NOV     46.8             - 69

 1 Saudi Arabia      16.6             - 49
 2 Mexico             9.1             - 10
 3 Canada             6.7             + 16
 4 South Korea        3.1             - 23
 5 Iran               1.2             - 93


15300CT 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