MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  March 1, 2017 (REPORT 9)

WEST BUTTER

Western butter makers report domestic retail demand is starting to ramp up for 
the spring holidays. Overall butter demand is steady with current contracted 
buyers pulling good volumes of butter. Churns are actively processing available 
cream, which is plentiful. Processors are focusing on print butter production, 
but are also working to make bulk butter. Inventories are building seasonally for 
late year butter needs. Bulk butter pricing in the West this week is 3 cents 
below to 1 cent above, based on the CME Group with various time frames and 
averages used. The DMN National Retail Report-Dairy for the week of February 24-
March 2 found that the U.S. weighted average advertised price of 1 pound butter 
is $3.15, down $.16 from last week. The U.S. weighted average price was $2.96 one 
year ago. In the Southwest, the weighted average advertised price of 1 pound 
butter is $2.99. In the Northwest, the weighted average advertised price of 1 
pound butter is $2.33 with a price range of $1.90-$2.99. This week, a cooperative 
export assistance program accepted requests for 52,360 pounds (23.75 metric tons) 
of butter. So far this year, the program has assisted member cooperatives who 
have contracts to sell 1.4 million pounds of butter (82% milkfat) in export 
markets. The NASS Cold Storage report noted U.S. butter stocks as of January 31, 
2017, were 223.1 million pounds, up 34% from last month, and up 16% from last 
year. Butter stocks in all warehouses were 192.1 million pounds last year at this 
time. According to the California Department of Food and Agriculture, January 
2017 butter production was 51.6 million pounds, down 2.3% from a year ago. The 
Grade AA butter price at the CME Group on Wednesday closed at $2.2325, up $.1150 
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