MD_DA440 DA MD DA440 BUTTER - WEST MADISON, WI. January 25, 2017 (REPORT 4) WEST BUTTER In the West, heavy cream supplies continue moving into butter production as some processors continue clearing surplus cream. Accordingly, butter output remains strong this week. At this point, cream demand from churners is light. A few processors had to shift operational schedules toward more print as they are having some issues with bulk machines. Butter production related to the Super Bowl has been completed and shipments to several retail outlets and restaurants are on the way. Bulk inventories continue building into cold storage. Bulk butter pricing in the West this week is 4 cents below to 5 cents above, based on the CME Group with various periods and averages used. The DMN National Retail Report-Dairy for the week of January 20-26 found that the U.S. weighted average advertised price of 1 pound butter is $3.25, down $.30 from last week. The U.S. weighted average price was $3.20 one year ago. There were no reported weighted average prices of 1 pound butter in either the Northwest or Southwest this week. The NASS Cold Storage report noted U.S. butter stocks as of December 31, 2016, were 174.9 million pounds, up 9% from last month, and up 13% from last year. Butter stocks in all warehouses were 155.1 million pounds last year at this time. The Grade AA butter price at the CME Group on Wednesday closed at $2.1975, down $.0425 from a week ago. 2016 U.S. Butter Imports (USDA-FAS) 2016 Imports % Change From % of (Million Lb.) 1 Year Ago Yearly Quota December Quota 2.3 + 267.8 14.7 TOTAL, JAN - DEC High Tier Not available at time of publication. Quota 14.9 - 1.2 97.1 1530CT Angel.Teran@ams.usda.gov 608.557.7011 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