MD_DA440 DA MD DA440 BUTTER - WEST MADISON, WI. May 18, 2016 (REPORT 20) WEST BUTTER Western butter making remains active. Cream is generally available for almost all processing needs, but is a little tight in some areas. However butter makers report multiples are in a position where it is neither very attractive to buy extra cream, nor is it very advantageous to sell the cream. As a result, butter manufacturers are steadily churning and inventories are building along seasonal trends. Industry contacts say domestic demand remains sound. Bulk and print butter are moving steadily through existing contracts. A few manufacturers report they are getting regular inquiries for spot loads of butter, but are hesitant to release the butter and short themselves for committed sales later in the year. The DMN National Retail Report-Dairy for the week of May 13-19 found that the U.S. weighted average advertised price of 1 pound butter is $2.75, down $.16 from last week. The U.S. weighted average price was $2.89 one year ago. In the Southwest, the weighted average advertised price of 1 pound butter is $2.39, with a range of $1.99-$2.50. In the Northwest, the weighted average advertised price of 1 pound butter is $3.57, with a range of $1.79-$3.99. 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, unchanged from a week ago. 2016 U.S. Butter Imports (USDA-FAS) 2016 Imports % Change From % of (Million Lb.) 1 Year Ago Yearly Quota April Quota 0.7 - 71.7 4.3 TOTAL, JAN - APR High Tier 11.2 + 375.9 ... Quota 5.0 - 40.0 32.4 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