MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  May 31, 2017 (REPORT 22)

Western butter makers are steadily making butter, but are holding back on production 
schedules when they can. Cream is generally plentiful, but a number of processors 
anticipate cream supplies will tighten as summer takes hold and ice cream manufacturers 
pull more cream supplies. Inventories are mixed. Some manufacturers report comfortable 
stocks. However, in some secondary markets, butter supplies are tight. Buyers are looking 
for loads of butter they can buy at favorable prices and put into storage. Some end users 
are eager to gain coverage of late year butter needs. Demand is steady. A few industry 
contacts describe demand to be better than expected for this time of year. Bulk butter 
pricing in the West this week is 4 cents below to 2 cents above, based on the CME Group 
with various time frames and averages used. The DMN National Retail Report-Dairy for the 
week of May 26-June 1 found that the U.S. weighted average advertised price of 1 pound 
butter is $3.57, up $.36 from last week. The U.S. weighted average price was $3.13 one 
year ago. In the Southwest, the weighted average advertised price of 1 pound butter is 
$3.56 with a price range of $2.90-$3.99. In the Northwest, the weighted average 
advertised price of 1 pound butter is $2.87, with a price range of $2.50-$3.99. This 
week, a cooperative export assistance program accepted requests for 703,275 pounds (319 
metric tons) of butter. So far this year, the program has assisted member cooperatives 
who have contracts to sell 3.0 million pounds of butter (82% milkfat) in export markets. 
According to the California Department of Food and Agriculture, April 2017 butter 
production was 48.0 million pounds, down 6.9% from a year ago. California year-to-date 
butter production through April is 198.9 million pounds, down 5.7% from 2016 butter 
production through April. The Grade AA butter price at the CME Group on Wednesday closed 
at $2.4100, up $.0300 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