MD_DA440                                                         
DA                                                               
MD DA440 BUTTER - WEST 

MADISON, WI.  August 17, 2016 (REPORT 33)

WEST BUTTER

Western butter production continues at a steady pace. Manufacturers generally 
report being content with the cream available for butter making. As a whole, they 
are not actively seeking much additional cream to fill butter production runs. A 
few processors have stopped or slowed their churns and are selling cream to Class 
II manufacturers. Inventories are large. Many industry contacts are comfortable 
with butter stock levels and with the knowledge that Q4 butter needs can be met. 
Domestic print demand is solid. Some butter makers are shifting production from 
bulk to print butter to meet current requests. The DMN National Retail Report-
Dairy for the week of August 12-18 found that the U.S. weighted average 
advertised price of 1 pound butter is $3.23, up $.24 from last week. The U.S. 
weighted average price is up $.12 from $3.11 one year ago. In the Southwest, the 
weighted average advertised price of 1 pound butter is $2.78, with a price range 
of $2.47-$3.50. In the Northwest, the weighted average advertised price of 1 
pound butter is $3.29, with a price range of $2.49-$3.79. 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 $2.2025, down $.0175 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