MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  October 18, 2017 (REPORT 42)

Western butter makers say production is ramping up for the holiday push. Although 
not having any trouble getting cream, a few butter processors say cream is a little 
tight and they would take a few more loads if priced right. Manufacturers are 
starting to see holiday interest percolating, but so far buyers have been holding 
back on major butter purchases. A few industry contacts speculate butter shoppers 
have made their buys steadily over the last few months and therefore have avoided 
creating any large holiday price runs. Current domestic demand appears to be in 
good balance with production. Inventories are relatively steady. Bulk butter 
pricing in the West this week is 2 cents 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 October 13-19 found that the U.S. weighted average advertised 
price of 1 pound butter is $3.37, down $.09 from last week. The U.S. weighted 
average price was $3.29 one year ago. In the Southwest, the weighted average 
advertised price of 1 pound butter is $3.88, with a price range of $3.49-$3.99. The 
weighted average price in the Northwest is $2.50. The Grade AA butter price at the 
CME Group on Wednesday closed at $2.3950, up $.0500 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-home