MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  October 4, 2017 (REPORT 40)

Western butter makers report steady production amid strong domestic demand 
and interest from international buyers. Although cream is relatively tight 
for this time of year, butter makers are not concerned about cream 
availability. There are adequate amounts of cream supplies for current 
production needs. Furthermore, a number of manufacturers have put away 
enough butter into the warehouse for much of their Q4 butter needs. Butter 
stocks are comfortable to long. Industry contacts suggest a few 
manufacturers looked to liquidate excess inventory before the fall baking 
season. This action may have caused market prices to slip slightly over the 
last few weeks, but contacts further expect butter prices to regain traction 
in light of strong international prices and the upcoming holiday butter 
season. Bulk butter pricing in the West this week is 1 cent 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 September 29-October 5 
found that the U.S. weighted average advertised price of 1 pound butter is 
$3.78, down $.05 from last week. The U.S. weighted average price was $3.38 
one year ago. In the Southwest, the weighted average advertised price of 1 
pound butter is $4.17, with a price range of $3.49-$4.99. The weighted 
average price in the Northwest is 3.56, with a price range of $2.99-$3.69. 
According to the California Department of Food and Agriculture, August 2017 
butter production was 38.7 million pounds, up 1.2 percent from a year ago. 
California year-to-date butter production through August is 362.1 million 
pounds, down 6.7 percent from 2016 butter production through August. The CME 
Group September 2017 monthly average price for AA butter, $2.4370, is down 
from the August monthly average of $2.6473. One year ago the CME Group 
monthly average was $1.9950. The Grade AA butter price at the CME Group on 
Wednesday closed at $2.3550, down $.0625 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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