MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  June 21, 2017 (REPORT 25)

WEST BUTTER

Demand for butterfat continues to be a primary driving force within the dairy industry. 
Western butter production is strong and focused mostly on putting away bulk butter for 
needs later in the year. End users' interests ebb and flow with the fluctuation of market 
prices, but ultimately a lot of buying decisions are driven by current needs and the 
strong desire to assure coverage. Inventories are fairly heavy. However, industry 
contacts suggest that stocks are either committed, or manufacturers are willing to hold 
butter supplies until peak butter demand season in the fall and early winter. Bulk butter 
pricing in the West this week is 3 cents below to 5 cents above, based on the CME Group 
with various time frames and averages used. The DMN National Retail Report-Dairy for the 
week of June 16-22 found that the U.S. weighted average advertised price of 1 pound 
butter is $3.39, down $.07 from last week. The U.S. weighted average price was $3.16 one 
year ago. In the Southwest, the weighted average advertised price of 1 pound butter is 
$3.33 with a price range of $2.99-$4.49. In the Northwest, the weighted average 
advertised price of 1 pound butter is $2.86, with a price range of $2.50-$3.49. The Grade 
AA butter price at the CME Group on Wednesday closed at $2.5850, down $.1150 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