MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  December 28, 2016 (REPORT 52)

WEST BUTTER

Western butter production continues to shift from print to bulk as the holidays 
pass and manufacturers set their plans into motion for 2017. Cream is readily 
available for most processing needs. Some butter makers report actively churning 
in order to stay ahead of the current excess supply of cream. December domestic 
butter demand was strong and near or slightly above what was expected. The pull 
from consumers may have helped draw down stocks to levels the market have not 
seen for some time. Butter marketers report strong buyer interest continuing, but 
higher butter prices in some markets are prompting customers to push back against 
the price rallies. 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 23-29 found that the U.S. 
weighted average advertised price of 1 pound butter is $2.60, down $.17 from last 
week. The U.S. weighted average price was $3.03 one year ago. In the Southwest, 
the weighted average advertised price of 1 pound butter is $2.74 with a price 
range of $1.88-$3.49. In the Northwest, the weighted average advertised price of 
1 pound butter is $2.75 with a price range of $1.99-$3.50. This week, a 
cooperative export assistance program accepted requests for 1.049 million pounds 
(476 metric tons) of butter. So far this year, the program has assisted member 
cooperatives who have contracts to sell 12.1 million pounds of butter (82% 
milkfat) in export markets. The NASS Cold Storage report noted U.S. butter stocks 
as of November 30, 2016, were 160.9 million pounds, down 29% from last month, but 
up 21% from last year. Butter stocks in all warehouses were 132.7 million pounds 
last year at this time. The Grade AA butter price at the CME Group on Wednesday 
closed at $2.3100, up $.1050 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