MD_DA440                                                         
DA                                                               
MD DA440 BUTTER - WEST 

MADISON, WI.  July 13, 2016 (REPORT 28)

WEST BUTTER

Western butter makers continue to position themselves for the end-of-year butter season 
ahead. Domestic demand is steady and many manufacturers are maintaining stable production 
schedules to meet current needs. However, a few processors have slowed or suspended their 
churns and have opted to sell cream to Class II manufacturers instead. Cream supplies are 
getting tighter, especially in the Southwest, but most butter makers say they are not 
having any trouble finding cream. Butter inventories are growing and are near seasonally 
high levels. Most butter makers are comfortable with the existing butter stocks. A few 
industry contacts say manufacturers are not too eager to release spot loads of bulk 
butter just yet, but are willing to hold on to the butter to assure coverage of late year 
demands. The DMN National Retail Report-Dairy for the week of July 8-14 found that the 
U.S. weighted average advertised price of 1 pound butter is $3.19, down $.19 from last 
week. The U.S. weighted average price was $3.02 one year ago. In the Southwest, the 
weighted average advertised price of 1 pound butter is $2.50, with a range of $2.49-2.50. 
In the Northwest, the weighted average advertised price of 1 pound butter is $3.28, with 
a range of $2.99-3.50. This week, a cooperative export assistance program accepted 
requests for 1.598 million pounds (725 metric tons) of butter. So far this year, the 
program has assisted member cooperatives who have contracts to sell 6.9 million pounds of 
butter (82% milkfat) in export markets. 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 $2.2725, 
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