MD_DA431 DA MD DA431 BUTTER - CENTRAL MADISON, WI. May 6, 2015 (Report 18) CENTRAL BUTTER Demand is remaining steady. Some manufacturers still want to build inventory levels, but are unable to with the current demand levels. This has some manufacturers concerned about Q3 contract obligations. Churning remains active. Some reports say surplus cream is going into butter manufacturing. Bulk butter prices remain at market to 6 cents over the market, based on the CME Group and various indices. The NASS Dairy Products report noted March U.S. butter production totaled 161.7 million pounds, up 3.5% from last month but 3.0% lower than a year ago. January-March cumulative U.S. production totals 497.5 billion pounds, 3.7% behind 2014 during the same time span. March production in the Central region totaled 60.8 million pounds, 6.0% lower than a month ago and 1.0% below last year. According to FAS, January-March U.S. butter exports total 17.1 million pounds, 75% below last year during the same time span. According to the DMN National Retail Report- Dairy, for May 1-7, the weighted average advertised price for a 1 pound package of butter in the Midwest was $2.00. The national weighted average price is $3.39, a 53 cent increase from last week and 48 cents higher than a year ago. The Grade AA butter price at the CME Group closed Wednesday at $1.8900, a 4 cent increase from last Wednesday's close. 2015 U.S. Butter and Milkfat Exports (USDA-FAS) (Million Lb.) % Change From 1 Year Ago March 5.8 - 79 Total Jan. - Mar. 17.1 - 75 1 Saudi Arabia 6.0 - 67 2 Mexico 5.2 + 74 3 Canada 1.4 + 5 4 Iran 1.0 - 83 5 South Korea 0.9 - 33 1500CT Tara.Herbst@ams.usda.gov 608-557-7007 USDA/AMS/Dairy Market News, Madison, Wisconsin Dairy Market News website: www.ams.usda.gov/dairymarketnews Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-home