MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  April 26, 2017 (REPORT 17)

Although milk output has been off a little in some of the western butter production 
states, cream destined for the churn has been in good supply. As a result, western butter 
churns remain active to deal with the abundant cream. Some butter makers are trying to 
hold back on processing runs in order to keep butter inventories in check. Butter 
supplies are generally heavy. Domestic demand has eased back since the spring holidays, 
and some manufacturers are transitioning from print to bulk butter production. 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 21-27 found that the U.S. weighted average advertised price of 1 
pound butter is $2.91, up $.20 from last week. The U.S. weighted average price was $3.31 
one year ago. There were no reported prices for 1 pound butter in the Southwest. However, 
in the Northwest, the weighted average advertised price of 1 pound butter is $3.36 with a 
price range of $2.99-$3.99. The NASS Cold Storage report noted U.S. butter stocks as of 
March 31, 2017, were 272.5 million pounds, up 1% from last month, and up 12% from last 
year. Butter stocks in all warehouses were 243.1 million pounds last year at this time. 
According to the California Department of Food and Agriculture, March 2017 butter 
production was 50.7 million pounds, down 8.6% from a year ago. California year-to-date 
butter production through March is 150.8 million pounds, down 5.3% from 2016 butter 
production through March. The Grade AA butter price at the CME Group on Wednesday closed 
at $2.0975, up $.0275 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