MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  September 21, 2016 (REPORT 38)

WEST BUTTER

Western butter makers continue to gear up for late year butter needs. Retail demand for 
butter is building. Butter production is active and a few butter makers are diverting 
excess cream into the churns. Some industry contacts suggest butter manufacturers are 
wanting to make sure they turn over their inventories. Processors seem willing to pull 
butter out of inventory to prepare it for retail market sales. Industry-wide butter 
inventories are still long, but many contacts are not concerned and feel Q4 demand will 
deflate stocks to more comfortable levels. The DMN National Retail Report-Dairy for the 
week of September 16-22 found that the U.S. weighted average advertised price of 1 pound 
butter is $3.64, up $.35 from last week. The U.S. weighted average price was $3.40 one 
year ago. In the Southwest, the weighted average advertised price of 1 pound butter is 
$4.40, with a price range of $2.99-$5.49. In the Northwest, the weighted average 
advertised price of 1 pound butter is $3.79, with a price range of $3.59-$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 $1.9675, down $.0425 from a week ago. This week is 
the first time since April 4, 2016, the butter price has closed below $2. Last year, in 
weeks 38 and 39, the CME butter price closed above $3 for four trading days.

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