MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  December 14, 2016 (REPORT 50)

WEST BUTTER

Western butter production is steady. Cream is becoming more readily available as 
some Class II manufacturers wind down ahead of the holiday season. Butter makers 
continue to transition to bulk butter production or advance print production for 
the spring holidays. Domestic butter demand is solid. Although manufacturers 
expect it ease back a bit over the winter holidays, some suggest demand may stay 
seasonally strong for some time. There has also been relatively good 
international demand for butter. Many industry contacts are eager to see how much 
inventories have changed in the last month when cold storage numbers are reported 
next week. Bulk butter pricing in the West this week is even 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 9-15 found that the U.S. 
weighted average advertised price of 1 pound butter is $2.77, down $.21 from last 
week. The U.S. weighted average price was $3.19 one year ago. In the Southwest, 
the weighted average advertised price of 1 pound butter is $2.81 with a price 
range of $1.99-$3.00. In the Northwest, the weighted average advertised price of 
1 pound butter is $3.20 with a price range of $2.50-$3.99. This week, a 
cooperative export assistance program accepted requests for 440,925 pounds (200 
metric tons) of butter. So far this year, the program has assisted member 
cooperatives who have contracts to sell 12.4 million pounds of butter (82% 
milkfat) in export markets. The Grade AA butter price at the CME Group on 
Wednesday closed at $2.0850, down $.0100 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