MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  July 26, 2017 (REPORT 30)

In the West region, butter production is unchanged from last week. Although ice cream 
producers and other Class II milk processors are using a lot of cream, cream is still 
available to butter makers. Butter churning is active. However, due to fairly high cream 
prices, some processors are opting to sell their cream instead of churning butter for 
storage. Other manufacturers are holding on to their stock for immediate and year end 
holiday needs. Domestic demand continues to be strong. Butter is moving well within 
contracts, and spot sales are regular. Contacts report that the international market is 
showing more interest in U.S. butter because of higher butter prices overseas. 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. The DMN National Retail Report?Dairy 
for the week of July 21-27 found that the U.S. weighted average advertised price of 1 
pound butter is $3.22, up $.31 from last week. The U.S. weighted average price was $3.07 
one year ago. In the Southwest, no advertised ads were reported this week. In the 
Northwest, the weighted average advertised price of 1 pound butter is $2.68. The NASS 
Cold Storage report noted U.S. butter stocks as of June 30, 2017, were 310.1 million 
pounds, down 1 percent from last month, and down 5 percent from last year. Butter stocks 
in all warehouses were 328.1 million pounds last year at this time. According to the 
California Department of Food and Agriculture, June 2017 butter production was 40.6 
million pounds, down 11.8 percent from a year ago. California year-to-date butter 
production through June is 285.3 million pounds, down 6.9 percent from 2016 butter 
production through June. The Grade AA butter price at the CME Group on Wednesday closed 
at $2.6075, down $.0250 from a week ago.

1530CT Florence.KoneGonzalez@ams.usda.gov 608.422.8594
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