MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  March 29, 2017 (REPORT 13)

WEST BUTTER

Western butter makers still have access to plenty of cream and are actively churning 
butter. However, as the spring holidays and summer approaches, more cream is getting used 
for ice cream and other Class II dairy products. Additional uses for the cream are mostly 
welcomed by butter manufacturers who are looking for ways to clear the excess cream. 
Butter demand is steady, but many end users are hesitant to take on any extra loads to 
put into their warehouse. Butter inventories are long. 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 24-
30 found that the U.S. weighted average advertised price of 1 pound butter is $2.99, down 
$.25 from last week. The U.S. weighted average price was $2.70 one year ago. In the 
Southwest, the weighted average advertised price of 1 pound butter is $3.34 with a price 
range of $2.50-$3.99. In the Northwest, the weighted average advertised price of 1 pound 
butter is $3.09 with a price range of $2.50-$3.99. 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. According to the California 
Department of Food and Agriculture, February 2017 butter production was 48.6 million 
pounds, down 4.7% from a year ago. California year-to-date butter production through 
February is 100.2 million pounds, down 3.5% from 2016 butter production through February. 
The Grade AA butter price at the CME Group on Wednesday closed at $2.1000, 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