MD_DA440 DA MD DA440 BUTTER - WEST MADISON, WI. January 13, 2015 (REPORT 2) WEST BUTTER Western butter production is active, but processors are carefully managing their inventories. Butter stocks are slowly rebuilding following the peak seasonal demand last month. Manufacturers are using internal cream supplies rather than buying additional loads of cream. Furthermore, a few butter makers that had been selling cream are now diverting the cream back into their churns. Although most of the current butter production is focused on bulk, a few manufacturers report an increase of orders for retail print butter. The demand for butter destined for store shelves through the spring holidays is providing some price support within the market. The DMN National Retail Report-Dairy for the week of January 8-14 found that the U.S. weighted average advertised price of 1 pound butter is $3.39, up $.39 from both one week and from one year ago. There were no retail prices reported for surveyed stores in the Southwest this week. In the Northwest, the weighted average advertised price of 1 pound butter was $3.99. This week, a cooperative export assistance program accepted requests for 1.323 million pounds of butter. 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 $2.1000, up $.0625 from a week ago. 2015 U.S. Butter Imports (USDA-FAS) 2015 Imports % Change From % of (Million Lb.) 1 Year Ago Yearly Quota December Quota 0.6 - 46.9 4.0 TOTAL, JAN - DEC High Tier 21.6 + 182.2 ... Quota 15.1 + 1.4 98.3 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