Tuesday, October 16, 2018
 Western Butter Wholesale Prices Continue to Show Higher Trend  

Western wholesale butter prices continue to show higher trending pricing.  Butter production has slowed following lower farm milk intakes.  Milk component levels are also seasonally lower and reducing yields.  Retail butter sales are good with some buyers looking to increase orders where possible. 

Bulk buyers are also increasing orders in some cases.  Inventoried butter stocks are being used to fill current orders.  Manufacturers are mostly content with stored inventories for third and fourth quarter needs. 

Prices for bulk butter range from 2 cents under to 4 1/2 cents under the market, based on the CME with various time frames and averages used.  Advertised butter prices from the National Dairy Retail Report showed a weighted average price of $2.34 per pound compared to $2.52 two weeks ago.  Butter advertising was reduced from two weeks ago.  Western advertised prices ranged from $2.29-3.29 per pound.  The weighted average for butter in the Northwest was $2.29, while the average in the Southwest was $3.09. 

Wednesday's close on the CME Group exchange for butter is up $.0375 to $1.6600.  The butter market has been higher in each of the last five trading sessions.  Last Wednesday the market closed at $1.5800.  Trading for the week has been moderate with five loads sold so far this week. 

According to the NASS Cold Storage report, stocks of butter as of June 30, 2012, total 242.7 million pounds, +28% or 52.4 million pounds more than June of last year.  Stocks were 7% lower or 18.9 million pounds less than end of May 2012. 

Source: AMS/USDA



Posted on Thursday, July 26, 2012 (Archive on Thursday, August 02, 2012)
Posted by bsutton@adpi.org  Contributed by bsutton@adpi.org