MD_DA440                                                         
DA                                                               
MD DA440 BUTTER - WEST 

MADISON, WI.  April 13, 2016 (REPORT 15)

WEST BUTTER

Western butter makers report cream supplies are more than adequate for current needs. 
Churns are still active, but are beginning to slow somewhat as summer draws near. Butter 
processors say stocks have grown to the point that they do not want to increase 
inventories any further and are working hard to manage their holdings. Both manufacturers 
and secondary marketers are hesitant to place more into cold storage without an increase 
in demand. Domestic retail demand has so far provided that demand, but this too has 
slowed somewhat. In addition, with U.S. butter priced much higher than butter production 
from other countries, there are limited export opportunities. The DMN National Retail 
Report-Dairy for the week of April 8-14 found that the U.S. weighted average advertised 
price of 1 pound butter is $3.05, up $.09 from last week. The U.S. weighted average price 
was $2.81 one year ago. In both the Southwest and the Northwest, the weighted average 
advertised price of 1 pound butter is $3.50. 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 
$2.0700, down $.0100 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