Butter - West
USDA - Wed Jan 03, 3:02PM CST

MADISON, WI.  January 3, 2017 (REPORT 1)

In West, market participants report that butter supplies have been drawn down due to the 
holiday demand. Many retailers are replenishing their post-holiday stocks sooner than 
usual. With the closure of some dairy plants during the holiday weekend, many distressed 
loads of cream moved to the churns. This week, cream continues to be available for butter 
processing, but at slightly higher premiums compared to last week. Butter production is 
still ongoing and mostly geared toward bulk butter. Western bulk butter pricing 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 December 29-January 4 
found that the U.S. weighted average advertised price of 1 pound butter is $3.13 down 
$.08 from last week. The U.S. weighted average price was $2.69 one year ago. In the 
Southwest, the weighted average advertised price of 1 pound butter is $3.99, with no 
price range. The weighted average price in the Northwest is $3.50, with no price range. 
The CME Group December 2017 monthly average price for AA butter, $2.2078, is down from 
the November monthly average of $2.2244 One year ago the CME Group monthly average was 
$2.1763. The Grade AA butter price at the CME Group on Wednesday closed at $2.2200, up 
$.0175 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-home