MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  October 26, 2016 (REPORT 43)

WEST BUTTER

Western butter churns are active as butter makers ramp up in advance of holiday demand. 
Industry contacts say production and sales are strong. Cream supplies are adequate for 
most processing needs, although cottage cheese, cream cheese sour cream are pulling 
heavily for available cream. Butter inventories may still be long as compared to last 
year, but end users suggest there has been a good draw down of available butter stocks. 
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 DMN National Retail 
Report-Dairy for the week of October 21-27 found that the U.S. weighted average 
advertised price of 1 pound butter is $2.98, down $.31 from last week. The U.S. weighted 
average price was $3.35 one year ago. In the Southwest, the weighted average advertised 
price of 1 pound butter is $2.52 with a price range of $0.79-$3.49. In the Northwest, the 
weighted average advertised price of 1 pound butter is $3.10, with a price range of 
$2.49-$3.99. This week, a cooperative export assistance program accepted requests for 
873,031 pounds (396 metric tons) of butter. So far this year, the program has assisted 
member cooperatives who have contracts to sell 10.3 million pounds of butter (82% 
milkfat) in export markets. The NASS Cold Storage report noted U.S. butter stocks as of 
September 30, 2016, were 269.2 million pounds, down 16% from last month, but up 44% from 
last year. Butter stocks in all warehouses were 187.5 million pounds last year at this 
time. According to the California Department of Food and Agriculture, September 2016 
butter production was 40.0 million pounds, up 3.8% from a year ago. California year-to-
date butter production through September is 428.0 million pounds, down 3.1% from 2015 
butter production through September. The Grade AA butter price at the CME Group on 
Wednesday closed at $1.8850, up $.1300 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