MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  January 20, 2015 (REPORT 3)

WEST BUTTER

Western butter makers are actively churning with available cream. The majority of 
production is focused on bulk butter with some print butter produced to meet immediate 
needs. Manufacturers say there is decent domestic consumer demand. Buyers are eager to 
get their retail butter needs met in advance of the spring holidays. As a result, the 
butter market is experiencing a higher price trend than in previous years. Many buyers 
seem comfortable with current market prices. Butter inventories are building slowly, 
which is typical for this time of year. The American Butter Institute reported new 
grading standards will take effect at the CME Group next month. After February 1st, 
sellers may be able to provide a Certificate of Analysis as an acceptable document for 
delivered loads of butter in the spot market. The DMN National Retail Report-Dairy for 
the week of January 15-21 found that the U.S. weighted average advertised price of 1 
pound butter is $3.57, up $.18 from last week, and up $.57 from one year ago. In the 
Southwest, the weighted average advertised price of 1 pound butter was $2.99. There were 
no retail prices reported for surveyed stores in the Northwest this week. This week, a 
cooperative export assistance program accepted requests for 1.543 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 $2.1325, up $.0325 from a week ago.


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