MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  April 19, 2017 (REPORT 16)

WEST BUTTER

Western butter production is steady and continues to transition from print to bulk in the 
post-spring holiday season. Butter makers are busy trying to find homes for the abundant 
supplies of milkfat. In some cases, cream is moving around the Western region and finding 
a place in butter churns, but often at discounted prices. Some butter makers would rather 
sell off the cream than churning more butter. Inventories are heavy. Some industry 
contacts anticipate softening butter prices in the near future with the ample cream 
supplies, seasonally lighter demand, and heavy butter stocks. However, others see some 
price support coming from firm international butter prices and greater use of cream in 
ice cream and other Class II dairy products. 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 April 14-20 found 
that the U.S. weighted average advertised price of 1 pound butter is $2.71, down $.22 
from last week. The U.S. weighted average price was $2.99 one year ago. In the Southwest, 
the weighted average advertised price of 1 pound butter is $2.75 with a price range of 
$0.99-$3.49. In the Northwest, the weighted average advertised price of 1 pound butter is 
$2.37 with a price range of $1.49-$3.99. The Grade AA butter price at the CME Group on 
Wednesday closed at $2.0700, 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