MD_DA440                                                         
DA                                                               
MD DA440 BUTTER - WEST 

MADISON, WI.  August 24, 2016 (REPORT 34)

WEST BUTTER

Western butter makers are looking at anticipated Q4 butter needs to guide production. 
Many processors are making more print than bulk butter as they try to prepare for fall 
baking needs. Domestic print butter demand remains solid. Cream availability is mixed, 
with some areas being tight and other areas having cream readily available. A few 
processors continue to sell cream off as opposed to making butter. U.S. butter 
inventories are large, but industry contacts question how much of the stockpile is bulk 
or print butter, and how much is committed versus not committed to buyers. The DMN 
National Retail Report-Dairy for the week of August 19-25 found that the U.S. weighted 
average advertised price of 1 pound butter is $3.41, up $.18 from last week. The U.S. 
weighted average price is up $.43 from $2.98 one year ago. In the Southwest, the weighted 
average advertised price of 1 pound butter is $1.79. In the Northwest, the weighted 
average advertised price of 1 pound butter is $3.34, with a price range of $2.49-$3.99. 
The NASS Cold Storage report noted U.S. butter stocks as of July 31, 2016, were 333.1 
million pounds, up 2% from last month and up 31% from last year. Butter stocks in all 
warehouses were 254.3 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 $2.0775, down $.1250 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