MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  March 8, 2017 (REPORT 10)

WEST BUTTER

Western butter makers report steady production as cream is readily available. 
Manufacturers are focusing mostly on print butter production, but are also working in 
runs of bulk butter to put into storage. Inventories are generally heavy and growing 
seasonally. Butter demand is stable. Butter is moving well through existing contracts, 
but manufacturers say end users are buying only as needed, and not buying any extra to 
put into storage. 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 March 3-9 found that the U.S. weighted 
average advertised price of 1 pound butter is $3.04, down $.11 from last week. The U.S. 
weighted average price was $2.90 one year ago. In the Southwest, the weighted average 
advertised price of 1 pound butter is $2.89 with a price range of $2.50-$2.99. In the 
Northwest, the weighted average advertised price of 1 pound butter is $3.00 with a price 
range of $2.50-$3.99. According to the NASS Dairy Products report, U.S. butter production 
during January 2017, 177.8 million pounds, was 1.2% higher than January 2016, and 8.5% 
higher than December 2016. In the West, total January butter production was 80.3 million 
pounds, 7.2% lower than January 2016, but 1.5% higher than December 2016. California 
January production was 51.6 million pounds, 2.3% lower than last year, but 2.2% higher 
than last month. The CME Group February 2017 monthly average price for AA butter, 
$2.1534, is up from the January monthly average of $2.2393. One year ago the CME Group 
monthly average was $2.0840. The Grade AA butter price at the CME Group on Wednesday 
closed at $2.1975, down $.0350 from a week ago.


2017 U.S. Butter and Milkfat Exports (USDA-FAS)

                 2017 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

TOTAL, JANUARY        4.1             - 28
 1 Canada             2.1             +328
 2 Mexico             0.7             - 83
 3 Saudi Arabia       0.4             + 66
 4 UAE                0.2             +207
 5 South Korea        0.1             +123


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