MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  September 27, 2017 (REPORT 39)

Butter demand in the domestic market is still strong. Western contacts 
report that some western processors are taking export orders for Q4. 
Supplies in the West are steady to higher. Production is steady compared to 
last week. While some manufacturers stopped producing butter for the moment, 
others are running at or near full schedules to meet Q4 demand. Cream 
supplies are sufficient to meet buyers' needs. Nonetheless, some processors 
expect that in the coming weeks, higher volumes of cream will be exported to 
Mexico for full fat products manufacturing. This week, domestic bulk butter 
prices range 1 cent to 6 cents over the market. The DMN National Retail 
Report-Dairy for the week of September 22-28 found that the U.S. weighted 
average advertised price of 1 pound butter is $3.83, down $.01 from last 
week. The U.S. weighted average price was $3.19 one year ago. In the 
Southwest, the weighted average advertised price of 1 pound butter is $3.63, 
with a price range of $2.99-$3.99. The weighted average price in the 
Northwest is 2.99, with no price range. This week, a cooperative export 
assistance program accepted requests for 385,809 pounds (175 metric tons) of 
butter. So far this year, the program has assisted member cooperatives who 
have contracts to sell 4.1 million pounds of butter (82% milkfat) in export 
markets. The NASS Cold Storage report noted U.S. butter stocks as of August 
31, 2017, were 280.2 million pounds, down 9 percent from last month, and 
down 12 percent from last year. Butter stocks in all warehouses were 318.8 
million pounds last year at this time. The Grade AA butter price at the CME 
Group on Wednesday closed at $2.4175, down $.0550 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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