MD_DA440                                                         
DA                                                               
MD DA440 BUTTER - WEST 

MADISON, WI.  September 14, 2016 (REPORT 37)

WEST BUTTER

Western butter production is steady in advance of the fall butter season. Butter is 
moving well through existing contracts and buyers are placing orders for their Q4 holiday 
butter needs. Some industry contacts say they are starting to see a little seasonal 
uptick in retail butter sales. Processors are not having any difficulty finding available 
cream. A few manufacturers report comfortable butter inventories and a willingness to 
sell off milkfat as opposed to churning. Butter inventories across the industry vary from 
long to committed. The DMN National Retail Report-Dairy for the week of September 9-15 
found that the U.S. weighted average advertised price of 1 pound butter is $3.29, down 
$.55 from last week. The U.S. weighted average price was $2.97 one year ago. In the 
Southwest, the weighted average advertised price of 1 pound butter is $4.07, with a price 
range of $2.99-$5.49. In the Northwest, the weighted average advertised price of 1 pound 
butter is $3.52, with a price range of $2.88-$3.99. 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 $2.0100, down $.0250 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