MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  July 19, 2017 (REPORT 29)

Western butter makers report strong sales of butter and other milk fats. Some buyers feel 
U.S. butter prices are more attractive than prices overseas. In many international 
markets milk fats are in tight supply and prices are above U.S. prices. American butter 
production is steady. Inventories are being maintained to meet immediate and late year 
butter needs. A few manufacturers are determined to make butter only if it is linked to a 
current or contracted sale. A number of processors and would rather sell off the cream 
than put butter in to storage during this period of higher cream costs. Bulk butter 
pricing in the West this week is 2 cents below to 5 cents above, based on the CME Group 
with various time frames and averages used. However, some contacts report overages as 
high as 10 cents above for limited quantities. The DMN National Retail Report-Dairy for 
the week of July 14-20 found that the U.S. weighted average advertised price of 1 pound 
butter is $2.91, down $.44 from last week. The U.S. weighted average price was $3.05 one 
year ago. In the Southwest, the weighted average advertised price of 1 pound butter is 
$2.92 with a price range of $2.49-$3.29. In the Northwest, the weighted average 
advertised price of 1 pound butter is $1.99. The Grade AA butter price at the CME Group 
on Wednesday closed at $2.6325, up $.0475 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