MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  September 28, 2016 (REPORT 39)

WEST BUTTER

Western butter makers continue to try to balance production and supplies held in 
inventory. Cream is readily available for processing and some butter makers are using the 
opportunity to churn butter and keep up with current and Q4 butter needs. Other 
processors are turning over their butter inventories. While others are selling cream and 
using the growing seasonal butter demand to move some of their butter holdings out. 
Inventories are still well above previous years and manufacturers expect the seasonal, 
end of year demand will help draw stocks down. The DMN National Retail Report-Dairy for 
the week of September 23-29 found that the U.S. weighted average advertised price of 1 
pound butter is $3.19, down $.45 from last week. The U.S. weighted average price was 
$3.24 one year ago. In the Southwest, the weighted average advertised price of 1 pound 
butter is $2.61, with a price range of $1.88-$2.99. In the Northwest, the weighted 
average advertised price of 1 pound butter is $3.30, with a price range of $1.99-$4.49. 
The NASS Cold Storage report noted U.S. butter stocks as of August 31, 2016, were 322.2 
million pounds, down 3% from last month, but up 52% from last year. Butter stocks in all 
warehouses were 212.2 million pounds last year at this time. According to the California 
Department of Food and Agriculture, August 2016 butter production was 38.2 million 
pounds, down 6.4% from a year ago. California year-to-date butter production through 
August is 388.0 million pounds, down 3.8% from 2015 butter production through August. 
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 $1.9200, down $.0475 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