MD_DA440                                                         
DA                                                               
MD DA440 BUTTER - WEST 

MADISON, WI.  May 25, 2016 (REPORT 21)

WEST BUTTER

Western butter contacts say they are closely monitoring their supplies and production in 
order to be in balance with late year butter needs. A few butter makers are purchasing 
extra loads of cream to run churns at full capacity. Cream is readily available and most 
processors can get what they need. Butter production remains active. Inventories, 
although higher than last year, are increasing along seasonal trends and do not seem to 
be a major concern to industry contacts. Manufacturers say domestic sales are good and 
butter is moving well through existing contracts. The DMN National Retail Report-Dairy 
for the week of May 20-26 found that the U.S. weighted average advertised price of 1 
pound butter is $3.29, up $.54 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 $3.07, with a range of $1.50-$3.98. In the Northwest, the weighted average advertised 
price of 1 pound butter is $2.99 in all stores surveyed. This week, a cooperative export 
assistance program accepted requests for 771,618 pounds (350 metric tons) of butter (82% 
milkfat). So far this year, the program has assisted member cooperatives who have 
contracts to sell 8.5 million pounds of butter in export markets. The NASS Cold Storage 
report noted U.S. butter stocks as of April 30, 2016, were 298.2 million pounds, up 23% 
from last month. Butter stocks in all warehouses were 232.4 million pounds last year at 
this time. The Grade AA butter price at the CME Group on Wednesday closed at $2.0800, up 
$.0275 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