MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  May 24, 2017 (REPORT 21)

Western butter demand has eased slightly as U.S. market prices continue to rise. Some 
buyers are taking a wait and see approach to purchases, hoping prices to settle at lower 
levels. Butter production is active due to plenty of cream available for the churns. 
However, a few processors would like to slow production to better manage stocks. 
Inventories are heavy and growing, but at a slower rate. The DMN National Retail Report-
Dairy for the week of May 19-25 found that the U.S. weighted average advertised price of 
1 pound butter is $3.21, down $.14 from last week. The U.S. weighted average price was 
$3.29 one year ago. In the Southwest, the weighted average advertised price of 1 pound 
butter is $2.74 with a price range of $2.49-$2.99. In the Northwest, the weighted average 
advertised price of 1 pound butter is $1.99. 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 2.3 million 
pounds of butter (82% milkfat) in export markets. The NASS Cold Storage report noted U.S. 
butter stocks as of April 30, 2017, were 292.3 million pounds, up 7% from last month, but 
down 1% from last year. Butter stocks in all warehouses were 295.8 million pounds last 
year at this time. The Grade AA butter price at the CME Group on Wednesday closed at 
$2.3800, up $.0350 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