MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  November 16, 2016 (REPORT 46)

WEST BUTTER

Western butter production is running strong as butter makers work hard to meet 
the remaining 2016 commitments. In some cases, processors are feeling a pinch and 
wondering if there is time to get enough butter made. Demand is solid and sales 
are drawing down available supplies. Some manufacturers are anticipating a 
slowdown of seasonal butter demand in the next few weeks. And a few butter makers 
are already planning the post-holiday seasonal production adjustments. 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 11-17 found that the U.S. 
weighted average advertised price of 1 pound butter is $2.69, down $.16 from last 
week. The U.S. weighted average price was $2.85 one year ago. In the Southwest, 
the weighted average advertised price of 1 pound butter is $2.73 with a price 
range of $1.99-$3.49. In the Northwest, the weighted average advertised price of 
1 pound butter is $3.05 with a price range of $1.99-$3.99. This week, a 
cooperative export assistance program accepted requests for 308,647 pounds (140 
metric tons) of butter. So far this year, the program has assisted member 
cooperatives who have contracts to sell 11.7 million pounds of butter (82% 
milkfat) in export markets. The Grade AA butter price at the CME Group on 
Wednesday closed at $2.0300, up $.1200 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