MD_DA440                                                         
DA                                                               
MD DA440 BUTTER - WEST 

MADISON, WI.  July 27, 2016 (REPORT 30)

WEST BUTTER
Western butter makers are working hard to fulfill current contract needs and position 
themselves for the end-of-year butter season ahead. Cream availability is getting 
tighter, but most butter makers are saying cream is not too difficult to find on the spot 
market. However, market participants expect to see changes in cream availability within 
the next few weeks. A few processors have decided to slow their churns and opted to sell 
off the excess cream. Butter inventories are high. Some industry contacts say 
manufacturers are comfortable with existing butter stocks, but are not too eager to 
release spot loads of bulk butter, especially as coverage of late year demand looms 
ahead. Currently, domestic demand is solid and manufacturers are providing steady 
shipments. The DMN National Retail Report-Dairy for the week of July 22-28 found that the 
U.S. weighted average advertised price of 1 pound butter is $3.07, up $.02 from last 
week. The U.S. weighted average price was up $.22, at $3.29, one year ago. In the 
Southwest, the weighted average advertised price of 1 pound butter is $1.88, with a range 
of $0.88-2.99. In the Northwest, the weighted average advertised price of 1 pound butter 
is $3.39, with a range of $2.99-3.59. The NASS Cold Storage report noted U.S. butter 
stocks as of June 30, 2016, were 326.0 million pounds, unchanged from last month and up 
27% from last year. Butter stocks in all warehouses were 256.0 million pounds last year 
at this time. 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 $2.2225, down $.0750 from a week 
ago.


15300CT Mike.Bandli@ams.usda.gov 608.557.7010; Daniel.Kim@ams.usda.gov
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