MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  October 19, 2016 (REPORT 42)

WEST BUTTER

Western butter makers are actively managing their production and inventories to meet 
contractual butter needs. Seasonal holiday demand is building. Processors report cream 
supplies are readily available and butter production is steady. Some manufacturers are 
microfixing bulk butter to rotate older stocks with fresh inventory and to help meet 
current retail demand. A few other butter makers, having slowed the churns earlier this 
fall, are looking to ramp up production for a final push ahead of the Q4 holiday baking 
season. The DMN National Retail Report-Dairy for the week of October 14-20 found that the 
U.S. weighted average advertised price of 1 pound butter is $3.29, up $.06 from last 
week. The U.S. weighted average price was $3.25 one year ago. In the Southwest, the 
weighted average advertised price of 1 pound butter is $2.99. In the Northwest, the 
weighted average advertised price of 1 pound butter is $3.23, with a price range of 
$2.99-$3.50.This week, a cooperative export assistance program accepted requests for 
859,803 pounds (390 metric tons) of butter. So far this year, the program has assisted 
member cooperatives who have contracts to sell 9.5 million pounds of butter (82% milkfat) 
in export markets. 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 $1.7550, down $.0350 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