MD_DA440  
DA                                                         
MD DA440 BUTTER - WEST                           

MADISON, WI.  February 08, 2012 (REPORT 6)

WEST BUTTER

Western butter prices continue to trend lower.  There is 
currently ample to surplus supplies of cream in the West and 
butter churns are busy handling the supply.  Discount cream is 
being offered as a way to clear inventories.  Print butter sales 
to club stores are reported to be good as lower prices become 
available.  Bulk butter sales are also being aided by 
discounting.  Prices for bulk butter range from even to $.0800 
cents under the market, based on the CME with various time frames 
and averages used.  Wednesday's close on the CME Group exchange 
for butter was $.0050 lower at $1.4400.  The last time the price 
at the CME Group was at this level was the first week of March 
2010.  Sales of butter are very light as only one load has 
changed hands so far this week.  CME Group average price for 
January 2012 for butter is $1.5831 compared to $2.0345 for 
January 2011.  According to the FAS, quota imports of butter for 
January 2012 total 553.7 thousand pounds, 9.8% more than the same 
period in 2011.  Imports for 2011 account for 3.6% of the total 
quota for 2012.  Imports of High-Tier butter (above quota and 
with a penalty) are 9,900 pounds, 22.2% above last year's amount 
in the same time period.

U.S. Butter Imports (USDA-FAS)	
                 2012 Imports         % Change From   % of 
                  (Million Lb.)       1 Year Ago      Yearly 

Jan.   
High Tier            .01              + 22.2             N.A.
Quota Imports       0.55              +  9.8             3.6

1500C  Robert.Hunter@ams.usda.gov 608.278.4156