MD_DA440 DA MD DA440 BUTTER - WEST MADISON, WI. May 4, 2016 (REPORT 18) WEST BUTTER Western butter manufacturers are able to get plenty of cream to meet their current processing needs. However, a bit more cream is starting to move into Class II channels and taking a little of the pressure off the churns. Butter production is still active with most churning directed toward bulk butter production. Butter makers are also making some print butter to meet immediate retail needs and requests for co-packed butter. Manufacturers say butter production and sales are good for this time of year. Inventories continue to build seasonally. The DMN National Retail Report-Dairy for the week of April 29-May 5 found that the U.S. weighted average advertised price of 1 pound butter is $3.03, down $.28 from last week. The U.S. weighted average price was $3.39 one year ago. In the Southwest, the weighted average advertised price of 1 pound butter is $2.81, with a range of $2.49-$2.99. In the Northwest, the weighted average advertised price of 1 pound butter is $2.19, with a range of $1.00-$2.99. 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 CME Group April 2016 monthly average price for AA butter, $2.0563, is up from the March monthly average of $1.9605, and up from the April 2015 monthly average of $1.7937. The Grade AA butter price at the CME Group on Wednesday closed at $2.0300, down $.0100 from a week ago. 2016 U.S. Butter and Milkfat Exports (USDA-FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago March Total 7.3 + 26 TOTAL, JAN - MAR 22.1 + 29 1 Mexico 16.5 +219 2 Canada 1.9 + 38 3 Saudi Arabia 1.4 - 77 4 South Korea 0.4 - 56 5 Taiwan 0.2 + 32 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