MD_DA440                                                         
DA                                                               
MD DA440 BUTTER - WEST 

MADISON, WI.  July 20, 2016 (REPORT 29)

WEST BUTTER

Western butter production is steady as butter makers work hard to fulfill current 
contract needs. Decreases in butter production at some facilities have been offset by 
active production at others. A few butter makers have opted for slowing the churns and 
selling off excess cream. Cream is generally available for most processing, but supplies 
are tight in some areas. Both buyers and sellers are watching what happens with cream 
availability over the next few weeks and how it may impact butter markets into the 
seasonally higher demand times of the year. Some buyers are finding bulk butter a little 
harder to acquire. Although butter supplies are currently long, industry contacts say 
manufacturers view stocks as comfortable and they are reluctant to release spot loads of 
butter unless milk fats become more widely available. Domestic butter demand is solid and 
manufacturers report steady shipments. The DMN National Retail Report-Dairy for the week 
of July 15-21 found that the U.S. weighted average advertised price of 1 pound butter is 
$3.05, down $.14 from last week. The U.S. weighted average price was $3.26 one year ago. 
In the Southwest, the weighted average advertised price of 1 pound butter is $2.86, with 
a range of $1.99-3.49. In the Northwest, the weighted average advertised price of 1 pound 
butter is $3.30, with a range of $2.99-3.50. 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 $2.2975, 
up $.0250 from a week ago.

       2016 U.S. Butter Imports (USDA-FAS)

                 2016 Imports      % Change From      % of
                 (Million Lb.)       1 Year Ago       Yearly Quota


June Quota    		  1.2          +  57.6           8.1

TOTAL, JAN - JUNE
   High Tier      	 16.8          + 200.1           ...
   Quota          	  7.2          -  32.2          46.6


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