MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  August 2, 2017 (REPORT 31)

Western contacts report that processors do not have any problem getting the cream needed 
for butter production. Butter production is steady and following its normal pattern. 
Supplies are comfortable for many manufacturers. However, a few processors continue to 
sell their cream in lieu of churning it for storage. Domestic butter demand is good. 
Contracted volumes are moving as planned, and spot sales are active. International demand 
seems to be picking up as the result of higher foreign prices. This week, western bulk 
butter prices are 2 cents below to 5 cents above, based on the CME Group with various 
time frames and averages used. Nevertheless, some market participants report overages as 
high as 10 cents above for limited quantities. The DMN National Retail Report-Dairy for 
the week of July 28-August 3 found that the U.S. weighted average advertised price of 1 
pound butter is $3.49, up $.27 from last week. The U.S. weighted average price was $3.21 
one year ago. In the Southwest, the weighted average advertised price of 1 pound butter 
is $3.89, with a range of 3.49-3.99. In the Northwest, no advertised ads were reported 
this week. The Grade AA butter price at the CME Group on Wednesday closed at $2.7100, up 
$.1025 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