MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  December 7, 2016 (REPORT 49)

WEST BUTTER

Western butter makers are looking to make and ship much of the print butter still needed 
for holiday orders by the end of the week. Retail orders are still strong, but industry 
contacts expect the demand to slow in the next two weeks as the winter holidays draw 
near. Butter production is active and cream supplies have been a little tight. However, 
cream is becoming more available as some butter and other cream product manufacturers 
wind down from the holiday rush. Butter makers are starting the transition to advance 
production of print butter for the spring holidays and for bulk butter production. 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 December 2-December 8 found that the U.S. weighted average 
advertised price of 1 pound butter is $2.98, up $.38 from last week. The U.S. weighted 
average price was $3.29 one year ago. In the Southwest, the weighted average advertised 
price of 1 pound butter is $3.11 with a price range of $2.50-$3.50. In the Northwest, the 
weighted average advertised price of 1 pound butter is $3.63 with a price range of $2.49-
$4.99. According to the NASS Dairy Products report, U.S. butter production during October 
2016, 143.0 million pounds, was 3.6% lower than October 2015, but 5.7% higher than 
September 2016. U.S. cumulative 2016 butter production through October is 1.582 billion 
pounds, 4.0% higher than the same period last year. In the West, total October butter 
production was 69.8 million pounds, 3.8% lower than October 2015, but 6.6% higher than 
September 2016. California October production was 42.2 million pounds, 1.2% higher than 
last year, and 5.7% higher than last month. The CME Group November 2016 monthly average 
price for AA butter, $1.9899, is up from the October monthly average of $1.8239. One year 
ago the CME Group monthly average was $2.8779. The Grade AA butter price at the CME Group 
on Wednesday closed at $2.0950, down $.1350 from a week ago.

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

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

October Total         6.3             +215

TOTAL, JAN - OCT     44.1              ...
 1 Mexico            19.3             +128
 2 Canada            12.8             +128
 3 Saudi Arabia       3.1             - 81
 4 South Korea        1.2             - 59
 5 China              0.9             +249


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