MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  February 15, 2017 (REPORT 7)

WEST BUTTER

Western butter production is active while cream supplies are plentiful. Industry 
contacts note a slight increase in cream demand from Class II producers, but the 
churns are the primary destination for much of the available cream. Butter 
production is predominantly focused on bulk butter, with a portion of the make 
directed toward print butter for immediate needs and the upcoming spring holiday 
season. Butter is moving well through existing agreements and creating a steady 
draw. A few industry contacts say there is not a lot of demand from outside of 
current contracts. Butter stocks are building as production outpaces demand. Bulk 
butter pricing in the West this week is 4 cents below to 3 cents above, based on 
the CME Group with various time frames and averages used. The DMN National Retail 
Report-Dairy for the week of February 10-16 found that the U.S. weighted average 
advertised price of 1 pound butter is $3.04, down $.60 from last week. The U.S. 
weighted average price was $3.29 one year ago. In the Southwest, the weighted 
average advertised price of 1 pound butter is $2.97 with a price range of $2.50-
$3.49. In the Northwest, the weighted average advertised price of 1 pound butter 
is $3.09 with a price range of $2.50-$3.99. The Grade AA butter price at the CME 
Group on Wednesday closed at $2.1575, down $.0200 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