MD_DA440                                                         
DA                                                               
MD DA440 BUTTER - WEST 

MADISON, WI.  May 11, 2016 (REPORT 19)

WEST BUTTER

With plenty of cream available, butter making remains active. Most manufacturers are 
focused on bulk butter production, but are also making some print butter to meet 
immediate retail needs or co-pack obligations. Processors describe retail and food 
service demand as relatively good. Industry contacts say butter is moving fairly easily 
through existing contracts and through further buyer inquiries. Some buyers are working 
hard to maintain a stable level of butter stocks and to assure coverage for late year 
butter needs. Manufacturer stocks are building along typical seasonal trends. The DMN 
National Retail Report-Dairy for the week of May 6-12 found that the U.S. weighted 
average advertised price of 1 pound butter is $2.91, down $.12 from last week. The U.S. 
weighted average price was $3.09 one year ago. There are no reported advertised prices in 
the Southwest, but in the Northwest, the weighted average advertised price of 1 pound 
butter is $2.86, with a range of $1.79-$3.49. According to the NASS Dairy Products 
report, U.S. butter production during March 2016, 182.0 million pounds, was 8.6% higher 
than March 2015, and 4.4% higher than February 2016. U.S. cumulative 2016 butter 
production through March is 532.0 million pounds, 7.0% higher than the same period last 
year. In the West, total March butter production was 89.8 million pounds, 8.8% higher 
than last year. According to the California Department of Food and Agriculture, March 
2016 butter production was 55.4 million pounds, down 2.7% from a year ago. California 
year-to-date butter production through March is 159.2 million pounds, down 3.7% from 2015 
butter production through March. Bulk butter pricing in the West this week is 1 cent 
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 $2.0525, 
up $.0225 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