MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  November 30, 2016 (REPORT 48)

WEST BUTTER

Cream made available over the Thanksgiving holiday kept western butter churns 
busy. Much of the focus is on making print butter for the winter holidays. 
Western butter production remains active as processors work hard to fill end of 
year commitments. Because domestic butter shoppers note everything is better with 
butter, retail butter demand is strong. Butter inventories continue to decrease 
due to the solid demand, but stocks are still larger than last year at this time. 
Bulk butter pricing in the West this week is 1 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 25-December 1 found that 
the U.S. weighted average advertised price of 1 pound butter is $2.59, up $.02 
from last week. The U.S. weighted average price was $2.84 one year ago. In the 
Southwest, the weighted average advertised price of 1 pound butter is $2.92 with 
a price range of $2.47-$3.99. In the Northwest, the weighted average advertised 
price of 1 pound butter is $2.52 with a price range of $1.88-$2.99. The NASS Cold 
Storage report noted U.S. butter stocks as of October 31, 2016, were 227.7 
million pounds, down 15% from last month, but up 27% from last year. Butter 
stocks in all warehouses were 178.8 million pounds last year at this time. 
According to the California Department of Food and Agriculture, October 2016 
butter production was 42.2 million pounds, up 1.2% from a year ago. California 
year-to-date butter production through October is 470.3 million pounds, down 2.8% 
from 2015 butter production through October. The Grade AA butter price at the CME 
Group on Wednesday closed at $2.2300, up $.1825 from a week ago.


1530CT 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