MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  May 17, 2017 (REPORT 20)

Western butter production is generally steady. However, larger pulls of cream 
from ice cream manufacturers are allowing butter makers to ease back a little on 
production. Industry contacts report there is still plenty of cream available for 
churning. U.S. market butter prices have been prodded higher by tight supplies 
and subsequent higher prices abroad. However, butter inventories here in the U.S. 
remain long. The recent price increases have prompted a rush of domestic buying 
activity as some buyers are eager to assure late year coverage. Some other end 
users are taking regular shipments and are willing to take a wait and see 
approach to market prices. The DMN National Retail Report-Dairy for the week of 
May 12-18 found that the U.S. weighted average advertised price of 1 pound butter 
is $3.35, up $.50 from last week. The U.S. weighted average price was $2.75 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-$3.50. In the Northwest, there were 
no reported sales prices this week. This week, a cooperative export assistance 
program accepted requests for 220,462 pounds (100 metric tons) of butter. So far 
this year, the program has assisted member cooperatives who have contracts to 
sell 2.1 million pounds of butter (82% milkfat) in export markets. The Grade AA 
butter price at the CME Group on Wednesday closed at $2.3450, up $.2150 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