MD_DA440                                                         
DA                                                               
MD DA440 BUTTER - WEST 

MADISON, WI.  August 31, 2016 (REPORT 35)

WEST BUTTER

Western butter production continues to march toward the fall baking season. Domestic 
demand is firm and manufacturers report a consistent draw from contracted buyers. 
Manufacturers continue to place a little more emphasis on print rather than bulk 
production. Inventories and production activities are mixed between processors. Some 
butter makers have committed inventories and are actively processing to stay ahead of 
demand. And a few butter makers have slowed the churns and continue to sell cream or milk 
fats off to other manufactured dairy processors. The DMN National Retail Report-Dairy for 
the week of August 26-September 1 found that the U.S. weighted average advertised price 
of 1 pound butter is $3.00, down $.41 from last week. The U.S. weighted average price was 
$3.16 one year ago. In the Southwest, the weighted average advertised price of 1 pound 
butter is $2.01, with a price range of $1.79-$2.49. In the Northwest, the weighted 
average advertised price of 1 pound butter is $2.73, with a price range of $2.49-$2.99. 
This week, a cooperative export assistance program accepted requests for 110,231 pounds 
(50 metric tons) of butter. So far this year, the program has assisted member 
cooperatives who have contracts to sell 8.5 million pounds of butter (82% milkfat) in 
export markets. According to the California Department of Food and Agriculture, July 2016 
butter production was 43.4 million pounds, up 6.7% from a year ago. California year-to-
date butter production through July is 349.8 million pounds, down 3.5% from 2015 butter 
production through July. 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 $2.0800, up $.0025 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