MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  August 23, 2017 (REPORT 34)

Western butter production is generally steady. Butter makers are working 
hard to find the right economic balance for their production. Cream is 
readily available, but current multiples curb processors' enthusiasm for 
putting higher cost milkfat into storage. A few manufacturers continue to 
slow their churns, opting to sell off cream as opposed to making butter. 
Strong domestic demand and reduced imports have helped draw down butter 
inventories. With an eye toward the fall holiday season, manufacturers have 
been able to keep inventories in good balance with current needs. Bulk 
butter pricing in the West this week is flat to 6 cents above the market, 
based on the CME Group with various periods and averages used. The DMN 
National Retail Report-Dairy for the week of August 18-24 found that the 
U.S. weighted average advertised price of 1 pound butter is $3.49, down $.21 
from last week. The U.S. weighted average price was $3.41 one year ago. In 
the Southwest, the weighted average advertised price of 1 pound butter is 
$3.86, with a range of $2.99-$4.49. In the Northwest, the weighted average 
advertised price of 1 pound butter is $2.49. The NASS Cold Storage report 
noted U.S. butter stocks as of July 31, 2017, were 307.7 million pounds, 
down 1 percent from last month, and down 8 percent from last year. Butter 
stocks in all warehouses were 332.8 million pounds last year at this time. 
The Grade AA butter price at the CME Group on Wednesday closed at $2.6100, 
down $.0525 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-
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