MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  September 6, 2017 (REPORT 36)

Western butter production is following the same trend as last week. Print 
butter output is at a seasonal level. Inventories are currently sufficient 
to meet the needs of buyers/end-users. In some parts of the West, demand 
from vegetable processors is strongly. Interest from retail buyers is 
starting to pick up. Overall, butter is moving strong within the domestic 
market. Ice cream manufacturers continue to pull a lot of cream. However, 
cream is still available for butter churning. With the recent drop in butter 
prices at the CME Group, contacts report that some purchasers' demands are 
increasing as they try to lock up prices. Some are even willing to contract 
up to the beginning of next year. Others are refraining from buying, hoping 
to see further price decreases. This week, bulk butter prices are steady, at 
flat to 6 cents over the market. The DMN National Retail Report-Dairy for 
the week of September 1-7 found that the U.S. weighted average advertised 
price of 1 pound butter is $3.56, up $.04 from last week. The U.S. weighted 
average price was $3.84 one year ago. In the Southwest, the weighted average 
advertised price of 1 pound butter is $4.49, with no price range reported. 
In the Northwest, the weighted average advertised price of 1 pound butter is 
$3.59, with a range of $2.99-$3.99. According to the NASS Dairy Products 
report, U.S. butter production during July 2017, 137.3 million pounds, was 
1.6 percent higher than July 2016, but 2.0 percent lower than June 2017. 
U.S. cumulative 2017 butter production through July is 1.1 billion pounds, 
1.4 percent lower than the same period last year. In the West, total July 
butter production was 66.1 million pounds, 7.2 percent lower than July 2016 
and 4.1 percent lower than June 2017. California July production was 38.2 
million pounds, 12.2 percent lower than last year and 6.0 percent lower than 
last month. The CME Group August 2017 monthly average price for AA butter, 
$2.6473, is up from the July monthly average of $2.6195. One year ago the 
CME Group monthly average was $2.1776. The Grade AA butter price at the CME 
Group on Wednesday closed at $2.4400, down $.1550 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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