MD_DA440                                                         
DA                                                               
MD DA440 BUTTER - WEST 

MADISON, WI.  February 17, 2016 (REPORT 7)

WEST BUTTER

With cream readily available, western butter production is steady and active. 
Processors are not very eager to buy additional cream, and would rather make 
butter with the cream they already have contracted. Domestic retail butter demand 
is still good in advance of the Q1 holiday baking season. A few manufacturers are 
noting a fractional slowing of this demand and have begun to shift some butter 
production to bulk. According to a few manufacturers, butter inventories are 
building slightly. The DMN National Retail Report-Dairy for the week of February 
12-18 found that the U.S. weighted average advertised price of 1 pound butter is 
$3.29, down $.03 from last week. The U.S. weighted average price was $3.62 one 
year ago. In the Southwest, the weighted average advertised price of 1 pound 
butter was $1.66. In the Northwest the weighted average advertised price of 1 
pound butter was $3.00. This week, a cooperative export assistance program 
accepted requests for 2.315 million pounds of butter. 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 $2.0425, down $.0825 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