MD_DA440  
DA                                                         
MD DA440 BUTTER - WEST                           

MADISON, WI.  May 22, 2013 (REPORT 21)

WEST BUTTER

Wholesale butter prices in the West are lower this week.  Butter 
production schedules remain heavy as cream continues to find its 
way to butter churns.  Demand for cream from Class II products 
has increased with warmer weather and preholiday production runs 
of cream cheese and whipped cream products.  The end of the 
school year and the holiday weekend have Class IV plants bracing 
for increased supplies as some other plants close for the 
weekend.  Although production schedules are heavy, manufacturers 
are content to build inventories at this time.  Demand for butter 
is good at the retail and club store level.  Some increased 
orders were placed into food service accounts for holiday weekend 
needs.  The lower price for butter has increased interest from 
export accounts also.  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 NASS Cold 
Storage report, stocks of butter as of April 30, 2013, total 
310.7 million pounds, +22% or 56.5 million pounds more than the 
close of April last year.  Stocks were 22% higher or 55.7 million 
pounds more than end of March 2013.  Butter prices at the CME 
Group exchange on Wednesday are $.0300 lower, closing at $1.5650.  
This is the lowest price for butter on the exchange since the 
last day of February this year.  Sales of butter at the exchange 
are active this week as eleven loads have traded hands.    


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