MD_DA440                                                         
DA                                                               
MD DA440 BUTTER - WEST 

MADISON, WI.  February 10, 2016 (REPORT 6)

WEST BUTTER

Western butter production is strong and running at full production schedules. Butter 
makers are finding plenty of cream available. In some cases, manufacturers are turning 
away extra loads of cream. Although inventories are long and export opportunities are 
very limited, domestic retail demand is still solid. Retail buyers seem willing to pay 
current market prices to assure coverage for the Q1 holidays. The DMN National Retail 
Report-Dairy for the week of February 5-11 found that the U.S. weighted average 
advertised price of 1 pound butter is $3.32, up $.40 from last week, and up $.29 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 
$3.49. Bulk butter pricing in the West this week is 2 cents under market to 3 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 $2.1250, down $.0350 from a week 
ago.

       2016 U.S. Butter Imports (USDA-FAS)

                 2016 Imports      % Change From      % of
                 (Million Lb.)       1 Year Ago       Yearly Quota

TOTAL, JANUARY
    High Tier      	  4.0          + 309.9            ...
    Quota          	  1.6          -   4.3           10.1


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

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

December Total        4.2             - 51

TOTAL, JAN - DEC     51.0             - 68

 1 Saudi Arabia      16.6             - 50
 2 Mexico            11.3             - 20
 3 Canada             8.0             + 28
 4 South Korea        3.2             - 25
 5 Iran               1.2             - 94


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