MD DA440 BUTTER - WEST 

MADISON, WI.  January 27, 2016 (REPORT 4)

WEST BUTTER

Butter makers say cream supplies are fairly well balanced. Although additional spot loads 
of cream are available, many processors are content to use the cream they have rather 
than seek out additional loads. Western butter production is active. Most processors are 
busy fulfilling Q1 commitments. Manufacturers report domestic demand has been decent 
ahead of the upcoming spring holidays. Inventories are building, but manufacturers are 
not overly concerned and feel they are manageable. The new grading standards announced 
last week by the American Butter Institute will take effect at the CME Group next week. 
Sellers may be able to provide a Certificate of Analysis as an acceptable document for 
loads of butter traded on that exchange. The DMN National Retail Report-Dairy for the 
week of January 22-28 found that the U.S. weighted average advertised price of 1 pound 
butter is $3.20, down $.37 from last week, and down $.12 from one year ago. In the 
Southwest, the weighted average advertised price of 1 pound butter was $2.99. In the 
Northwest the weighted average advertised price of 1 pound butter was $3.36, with a price 
range of $2.99-$3.99. The NASS Cold Storage report noted U.S. butter stocks as of 
December 31, 2015, were 152.9 million pounds, up 15% from last month. Butter stocks in 
all warehouses were 104.7 million pounds last year at this time. 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 $2.2000, up $.0675 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