MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  July 5, 2017 (REPORT 27)

WEST BUTTER

In the Western region, cream supplies are less available as the seasonal demand from 
Class II manufacturers is active. Butter production is stable to light. With the strong 
milkfat price, a number of butter makers have reduced butter production to market their 
cream. Butter stocks are steady to building. Some manufacturers are overseeing 
inventories steadily to confirm adequate butter supply for future demand. A handful of 
market participants are securing butter for current and Q3/Q4 needs. In addition, a 
number of end users are looking into available butter for 2018. Domestic bulk butter 
pricing in the West is 2 cents below to 5 cents above, based on the CME Group with 
various time periods and averages used. The CME Group June 2017 monthly average price for 
AA butter, $2.5688, is up from the May monthly average of $2.2684. One year ago the CME 
Group monthly average was $2.2640. The Grade AA butter price at the CME Group on 
Wednesday closed at $2.6450, up $.0050 from a week ago. The DMN National Retail Report-
Dairy for the week of June 30 to July 6, 2017 found that the U.S. weighted average 
advertised price of 1 pound butter is $3.86, up $0.70 from last week. The U.S. weighted 
average price was $3.38 one year ago. In the Southwest, the weighted average advertised 
price of 1 pound butter is $4.69 with a price range of $3.49-$4.99. In the Northwest, the 
weighted average advertised price of 1 pound butter is $3.99, up $1.74 from last week's 
Northwest weighted average advertised price.  

1530CT Jessica.Mueller@ams.usda.gov 608.422.8589 
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