MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  March 22, 2017 (REPORT 12)

WEST BUTTER

Western butter production is active and stable. A few processors say they are 
churning and packaging butter to keep up with the excess cream. Demand is steady 
in advance of spring holidays, but buyers are expressing little interest beyond 
immediate needs. Industry contacts note inventories are heavy and following 
normal seasonal patterns. A few manufacturers say their butter stocks are mostly 
committed into the near term. Bulk butter pricing in the West this week is 4 
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 17-23 
found that the U.S. weighted average advertised price of 1 pound butter is $3.24, 
up $.06 from last week. The U.S. weighted average price was $3.07 one year ago. 
In the Southwest, the weighted average advertised price of 1 pound butter is 
$2.82 with a price range of $1.99-$2.99. In the Northwest, the weighted average 
advertised price of 1 pound butter is $3.00. The NASS Cold Storage report noted U.S. 
butter stocks as of February 28, 2017, were 282.6 million pounds, up 28% from last month, 
and up 20% from last year. Butter stocks in all warehouses were 235.6 million pounds last 
year at this time. The Grade AA butter price at the CME Group on Wednesday closed 
at $2.1200, down $.0300 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