MD_DA440                                                         
DA                                                               
MD DA440 BUTTER - WEST 

MADISON, WI.  March 2, 2016 (REPORT 9)

WEST BUTTER

Industry contacts note the butter market may be softening somewhat. Although cream is 
readily available, there may be less demand for cream to enter the churn. Western 
manufacturers are still actively producing butter and are committed on current 
agreements. However, some say the domestic demand for butter has subsided a little as the 
spring holiday orders get filled. Much of the seasonal holiday buying is done or nearing 
completion. Some butter makers are shifting more of their production toward bulk butter 
than retail. As a result, butter inventories are seasonally building. The DMN National 
Retail Report-Dairy for the week of February 26-March 3 found that the U.S. weighted 
average advertised price of 1 pound butter is $2.96, down $.48 from last week. The U.S. 
weighted average price was $2.77 one year ago. In the Southwest, the weighted average 
advertised price of 1 pound butter is $2.79. In the Northwest the weighted average 
advertised price of 1 pound butter is $2.50. Bulk butter pricing in the West this week is 
3 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 
$1.9800, down $.0200 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