MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  February 1, 2017 (REPORT 5)

WEST BUTTER

Western butter production is steady. Churning is mostly focused on making bulk 
butter, but with an eye toward print butter for the spring holiday season. A few 
processors would like to ease back on their butter manufacturing, but it is 
proving difficult due to the ample supplies of cream that need to clear. Butter 
inventories are rising while domestic demand remains relatively stable. Bulk 
butter pricing in the West this week is 4 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 27-February 2 found that the U.S. weighted 
average advertised price of 1 pound butter is $3.31, up $.06 from last week. The 
U.S. weighted average price was $2.92 one year ago. There were no reported 
weighted average prices of 1 pound butter in either the Northwest or Southwest 
this week. According to the California Department of Food and Agriculture, 
December 2016 butter production was 50.4 million pounds, down 2.0% from a year 
ago. California year-to-date butter production through December is 563.1 million 
pounds, down 3.0% from 2015 butter production through December. The Grade AA 
butter price at the CME Group on Wednesday closed at $2.2400, up $.0425 from a 
week ago.

1530CT Mike.Bandli@ams.usda.gov 608.422.8592
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