MD_DA440  
DA                                                         
MD DA440 BUTTER - WEST                           

MADISON, WI.  May 15, 2013 (REPORT 20)

WEST BUTTER

Western butter prices are weak as the market has moved lower for 
the previous three weeks.  Heavy butter production schedules have 
increased inventories this spring and buyers that had been 
content to wait for more favorable prices are showing increased 
interest in securing additional supplies.  Domestic sales to 
retail and club store accounts are showing increased demand for 
print butter.  Export demand is reduced as international prices 
have moderated.  Advertised U.S. butter prices from the National 
Dairy Retail Report were sharply lower (51 cents) compared to two 
weeks ago.  Nationally, butter showed a weighted average price of 
$2.53 per pound compared to $3.04 two weeks ago and $2.57 a year 
ago.  Nationally, featuring of butter ads this week was more than 
doubled from the same period two weeks ago.  In lighter featuring 
for the region, Western advertised prices ranged from $1.88-2.00 
per pound.  Butter prices at the CME Group exchange on Wednesday 
are $.0075 higher, closing at $1.5950.  The higher price is the 
first increase since mid-April.  Sales of butter at the exchange 
are light with only one sale reported by midweek.  Prices for 
bulk butter range from 3 cents under to 5 cents under the market, 
based on the CME with various time frames and averages used.  
According to the FAS, quota imports of butter for January - April 
2013 total 3.2 million pounds, 52% more than the same period in 
2012.  January - April imports for 2013 account for 20.6% of the 
yearly total quota.  Imports of High-Tier butter (above quota and 
with a penalty) are 226,939 pounds, significantly higher than 
last year's high tier import of 74,604 pounds for January - 
April.  

2013 U.S. Butter Imports (USDA-FAS)
                  (Million Lb.)       % Change From   % of 
                                      1 Year Ago      Yearly Quota

Apr  Quota Imports   0.64             + 130.8              4.2

Jan. - Apr.  
High Tier             .23             + 204.2             N.A.
Quota Imports        3.17             +  52.5             20.6

1500C Robert.Hunter@ams.usda.gov 608.278.4158