MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  December 21, 2016 (REPORT 51)

WEST BUTTER

Western butter makers are starting to ease into the seasonal Q1 production 
schedules, making a little more bulk butter each week. Cream is plentiful as the 
Class II winter holiday order rush concludes and Class II manufacturers wind down 
production levels. A few processors say the butter churns are busy trying to 
clear the excess cream. Butter inventories are seasonally lower and a few 
industry contacts suggest stocks may be tighter than they have been for some 
time. Domestic demand is still good as consumers prepare for holiday gatherings, 
but the holiday baking season is passing quickly. 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 16-22 found that the U.S. weighted average advertised price of 1 pound 
butter is $2.77, unchanged from last week. The U.S. weighted average price was 
$3.10 one year ago. In the Southwest, the weighted average advertised price of 1 
pound butter is $2.59 with a price range of $1.88-$2.99. In the Northwest, the 
weighted average advertised price of 1 pound butter is $2.50 with a price range 
of $2.49-$2.50. This week, a cooperative export assistance program accepted 
requests for 1.323 million pounds (600 metric tons) of butter. So far this year, 
the program has assisted member cooperatives who have contracts to sell 11.1 
million pounds of butter (82% milkfat) in export markets. The Grade AA butter 
price at the CME Group on Wednesday closed at $2.2050, up $.1200 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