MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. February 10, 2016 (Report 6)

In the Central region, cream supplies are readily available on the 
f.o.b. spot market. Several butter manufacturers indicate their churns 
are running close to full just on internal and contract cream 
supplies. However, a few butter producers report they have comfortable 
inventories on hand and are now selling some cream intakes to maintain 
the current supply/demand balance. Salted and unsalted butter 
production is active, with comparatively larger cream volumes clearing 
into salted bulk butter. Demand from retailers is steady to higher as 
spring holiday ordering advances. Sales into manufacturing are light. 
Foodservice orders are steady to lower post Super Bowl. Bulk butter 
prices are steady, ranging from 4 cents under to 7 cents over the 
market, based on CME Group prices and various indices. The NASS Dairy 
Products report noted December U.S. butter production totaled 177.1 
million pounds, up 4.3 percent from a year ago. January-December 
cumulative U.S. production totals 1.849 billion pounds, 0.4 percent 
behind 2014 during the same time span. December production in the 
Central region totaled 72.6 million pounds, 0.4 percent lower than 
last year. The Central region accounted for 41% of U.S. production in 
December. The DMN National Dairy Retail Report-Dairy for February 5-11 
noted the national weighted average advertised price for a 1 pound 
package of butter was $3.32, $0.40 above one week ago and $0.29 above 
one year ago. The weighted average price in the South Central region 
is $2.96. The CME Group Grade AA butter market closed Wednesday at 
$2.1250, down $0.0350 from last Wednesday.


       2016 U.S. Butter Imports (USDA-FAS)

                 2016 Imports      % Change From      % of
                 (Million Lb.)       1 Year Ago       Yearly Quota

TOTAL, JANUARY
    High Tier              4.0          + 309.9            ...
    Quota                  1.6          -   4.3           10.1


			2015 U.S. Butter and Milkfat Exports (USDA-FAS)

                 2015 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

December Total        4.2             - 51

TOTAL, JAN - DEC     51.0             - 68

 1 Saudi Arabia      16.6             - 50
 2 Mexico            11.3             - 20
 3 Canada             8.0             + 28
 4 South Korea        3.2             - 25
 5 Iran               1.2             - 94



1530CT Janet.Linder@ams.usda.gov 608.557.7003
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home