MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  November 9, 2016 (REPORT 45)

WEST BUTTER

Western butter production is active as processors work hard to keep up with strong 
seasonal demand. Cream is generally in good supply, but other holiday favorites are also 
pulling at cream supplies. According to some industry contacts, retail and bulk butter 
demand are drawing stocks lower. A few buyers are seeking out additional loads of butter 
for purchase. On occasions, an urgent need to buy is pushing resales above market prices 
for bulk butter. Bulk butter pricing in the West this week is 2 cent under market to 5 
cents above, based on the CME Group with various time frames and averages used. The DMN 
National Retail Report-Dairy for the week of November 4-10 found that the U.S. weighted 
average advertised price of 1 pound butter is $2.85, down $.46 from last week. The U.S. 
weighted average price was $3.08 one year ago. In the Southwest, the weighted average 
advertised price of 1 pound butter is $3.17 with a price range of $1.99-$4.49. In the 
Northwest, the weighted average advertised price of 1 pound butter is $3.15 with a price 
range of $2.49-$3.50. According to the NASS Dairy Products report, U.S. butter production 
during September 2016, 133.1 million pounds, was 0.4% lower than September 2015, but 2.3% 
higher than August 2016. U.S. cumulative 2016 butter production through September is 
1.437 billion pounds, 4.7% higher than the same period last year. In the West, total 
September butter production was 65.5 million pounds, 5.4% lower than September 2015, and 
6.9% lower than August 2016. California September production was 40.0 million pounds, 
3.8% higher than last year, and 4.6% higher than last month. The CME Group October 2016 
monthly average price for AA butter, $1.8239, is down from the September monthly average 
of $1.9950. One year ago the CME Group monthly average was $2.4757. The Grade AA butter 
price at the CME Group on Wednesday closed at $1.9100, up $.0200 from a week ago.


2016 U.S. Butter and Milkfat Exports (USDA-FAS)

                 2016 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

September Total       3.7             +131

TOTAL, JAN - SEP     37.8             - 10
 1 Mexico            19.0             +143
 2 Canada             7.7             + 54
 3 Saudi Arabia       3.1             - 81
 4 South Korea        1.0             - 64
 5 China              0.9             +561


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