MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  August 30, 2017 (REPORT 35)

In the western region, processors report that there is enough cream 
available for butter manufacturing. Butter production is the same as last 
week. Churns are currently working at or near full capacity. Some butter 
producers are selling their cream to Class II processors to take advantage 
of higher cream premiums. In the domestic market, demand for butter is 
strong while imports are lower. As a result, inventories are firming in some 
areas. However, they remain in good balance in other areas. Some contacts 
believe that cream availability will increase as more milk goes into 
bottling to fulfill schools' orders. Consequently, butter production will 
pick up as well. This week, bulk butter pricing is flat to 6 cents over the 
market. The DMN National Retail Report-Dairy for the week of August 25-31 
found that the U.S. weighted average advertised price of 1 pound butter is 
$3.52, up $.03 from last week. The U.S. weighted average price was $3.00 one 
year ago. In the Southwest, the weighted average advertised price of 1 pound 
butter is $3.68, with a range of $3.29-$3.99. In the Northwest, the weighted 
average advertised price of 1 pound butter is $3.49, with a range of $2.99-
$4.50. The Grade AA butter price at the CME Group on Wednesday closed at 
$2.5950, down $.0150 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-
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