MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  April 5, 2017 (REPORT 14)

WEST BUTTER

Demand for Western butter is still good as the spring holidays approach. However, buyers 
are trying hard to not overextend themselves and take on more butter than what meets 
their immediate needs. Most holiday shipments have been made and some butter makers are 
transitioning from print to bulk butter production. Some manufacturers say inventories 
are still building, but not at the pace that processors projected a few months ago. 
Butter production remains active as manufacturers work to clear available cream. 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 31-April 6 found that the U.S. weighted average advertised price of 
1 pound butter is $3.07, up $.08 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 $2.80 with a price range of $2.49-$2.99. In the Northwest, the weighted average 
advertised price of 1 pound butter is $3.39 with a price range of $2.99-$3.99. According 
to the NASS Dairy Products report, U.S. butter production during February 2017, 164.3 
million pounds, was 5.8% lower than February 2016, and 7.6% lower than January 2017. U.S. 
cumulative 2017 butter production through February is 342.1 million pounds, 2.3% lower 
than the same period last year. In the West, total February butter production was 73.3 
million pounds, 11.3% lower than February 2016, and 8.7% lower than January 2017. 
California February production was 48.6 million pounds, 4.7% lower than last year, and 
5.7% lower than last month. The CME Group March 2017 monthly average price for AA butter, 
$2.1392, is down from the February monthly average of $2.1534. One year ago the CME Group 
monthly average was $1.9605. The Grade AA butter price at the CME Group on Wednesday 
closed at $2.1450, up $.0450 from a week ago.


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

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

February 		    4.1		  - 54

TOTAL, JAN - FEB      8.2             - 44
 1 Canada             3.9             +224
 2 Mexico             1.4             - 88
 3 Saudi Arabia       0.8             - 21
 4 South Korea        0.4             + 70
 5 UAE                0.4             +198

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