MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  October 12, 2016 (REPORT 41)

WEST BUTTER

Western butter makers report strong retail demand in advance of the Q4 holiday season. 
Cream is readily available and some butter makers are actively churning to stay ahead of 
buyer requests. A few other manufacturers are microfixing small amounts of butter to meet 
the seasonal increase in demand. Industry contacts say lower butter prices are generating 
buyer interest. The USDA Foreign Agricultural Service reported the Japanese government 
will offer a tender for an additional 4,000 MT of butter this month. American butter 
processors hope the narrowed gap between U.S. butter prices and world market prices will 
make U.S. butter more attractive in this and other export markets. The DMN National 
Retail Report-Dairy for the week of October 7-13 found that the U.S. weighted average 
advertised price of 1 pound butter is $3.23, down $.15 from last week. The U.S. weighted 
average price was $3.09 one year ago. In the Southwest, the weighted average advertised 
price of 1 pound butter is $3.69, with a price range of $2.50-$3.99. In the Northwest, 
the weighted average advertised price of 1 pound butter is $3.99. Bulk butter pricing in 
the West this week is 2 cent under market to 2 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 $1.7900, down $.0600 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