Butter - West
USDA - Wed Mar 07, 3:08PM CST
MD_DA440

     Butter - Western U.S.

     Report 10 - Released on March 07, 2018

     Western butter makers report cream is ample and butter production is active. Print butter
     demand is strong, as would be expected ahead of the spring holidays. However, such a cursory
     explanation does not fully elucidate the current butter market. Some processors suggest bulk
     butter demand is somewhat lackluster for this time of year. Also, some buyers are cautious,
     feeling that there will be enough butter available when the need arises, and possibly at
     more favorable prices. End users are working hard to manage their stocks closely, trying to
     get the butter needed for the short term into the warehouse, but being careful about longer
     term butter needs. Industry contacts suggest there are good volumes of bulk butter on hand,
     while print butter stocks are lower due to seasonal demand.

     The DMN National Retail Report´┐ŻDairy for the week of March 2-8 found that the U.S. weighted
     average advertised price of 1 pound butter is $3.56 down $.20 from last week. The U.S.
     weighted average price was $3.04 one year ago. The weighted average price in the Southwest
     is $3.66, with a price range of $1.99-$4.99. The weighted average price in the Northwest is
     $3.99.
     Prices for: Western U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter

     Bulk Basis Pricing  - 80% Butterfat $/LB:              -0.0500 - +0.0650

     Information for the period March 5 - 9, 2018, issued weekly

     Secondary Sourced Information:

     According to the NASS Dairy Products report, U.S. butter production during January 2018,
     185.5 million pounds, was 4.3 percent higher than January 2017, and 9.0 percent higher than
     December 2017. In the West, total January butter production was 86.8 million pounds, 8.0
     percent higher than January 2017 and 6.4 percent more than December 2017. California
     January production was 53.9 million pounds, 4.5 percent higher than last year, and 7.1
     percent higher than last month.

     The CME Group February 2018 monthly average price for AA butter, $2.1211, is down from the
     January monthly average of $2.1587. One year ago the CME Group monthly average was $2.1534.


     The Grade AA butter price at the CME Group on Wednesday closed at $2.2300, up $.0525 from a
     week ago.

     2018 U.S. Butter and Milkfat Exports (USDA-FAS)

                      2018 Exports      % Change From
                      (Million Lb.)       1 Year Ago

     TOTAL, JANUARY        5.1             + 24
      1 Canada             1.8             - 16
      2 Mexico             1.0             + 28
      3 Saudi Arabia       0.5             + 27
      4 Dominican Republic 0.3            +1550
      5 Morocco            0.3             +435

     2018 U.S. Butter and Milkfat Imports (USDA-FAS)
     (Imports for Consumption)

                                                2018 Imports      % Change From
                                                (Million Lb.)       1 Year Ago

     January Imports
       Total Butter, Fats, Milk (H.S. Code 0405)     6.0             +  8
       Butter
        Quota (H.S. Code 405101000)                  0.9             + 96
        Over Quota (H.S. Code 405102000)             3.4             -  4
       AMF
        Quota (H.S. Code 405901020)                  0.4             - 43
        Over Quota (H.S. Code 405902020)             1.1             +140
       Other Milk Fat                                0.2             - 54

                                                2018 Imports      % Change From
                                                (Million Lb.)       1 Year Ago

     TOTAL, JANUARY                                  6.0             +  8
      1 Ireland                                      3.5             + 50
      2 Mexico                                       1.1             + 48
      3 New Zealand                                  0.6             - 21
      4 France                                       0.4             + 58
      5 India                                        0.2             +107

     Published by:
     Dairy Market News - Madison, WI
     MIKE BANDLI, (608)422-8592
     Email: mike.bandli@ams.usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: http://www.ams.usda.gov/market-news/dairy
     DMN Database Portal: http://www.marketnews.usda.gov/mnp/da-home