MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  January 18, 2017 (REPORT 3)

WEST BUTTER

Western butter production is following typical seasonal patterns. Cream is in 
generally good supply and is keeping the churns running at a steady pace. 
Manufacturers report some of the strong demand for milkfat and butter in Q4 2016 
has carried forward into 2017. Processors are a little surprised with the solid 
domestic sales. At least part of current production is dedicated to print butter 
production to keep up with current requests. The steady draw from domestic 
markets has made it more challenging for butter makers to replenish bulk butter 
supplies than normal. Bulk butter pricing in the West this week is 3 cents below 
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 January 13-19 found 
that the U.S. weighted average advertised price of 1 pound butter is $3.55, up 
$.20 from last week. The U.S. weighted average price was $3.57 one year ago. In 
the Southwest, the weighted average advertised price of 1 pound butter is $3.39 
with a price range of $2.99-$3.49. In the Northwest, the weighted average 
advertised price of 1 pound butter is $3.49. The Grade AA butter price at the CME 
Group on Wednesday closed at $2.2400, down $.0375 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