MD_DA431 DA MD DA431 BUTTER - CENTRAL MADISON, WI. March 9, 2016 (Report 10) In the Central region, butter production is ongoing but at rates lower than a few weeks ago. Butter churn operators indicate cream offerings from eastern and western sources are less available. Also, churners are less interested in pursuing additional cream loads. Some cream spot offers are being turned away as butter makers reevaluate current holdings against forecasted sales and production. Sales into retail outlets are reportedly robust as many consumer outlets alternate features between club and brand name one pound packages. Bulk butter prices reported range from market to 6 cents over the market, with various time frames and averages used. The CME Group monthly average price for Grade AA butter during February was $2.0840, compared to $1.7293 a year ago. Wednesday at the CME Group, Grade AA butter closed at $1.9600, down $0.0200 from last Wednesday. The NASS Dairy Products report noted January U.S. butter production totaled 175.7 million pounds, down 2.1 percent from a year ago. The Central region accounted for 39 percent (69.0 million pounds) of U.S. production in January. This production is 7.7 percent lower than one year ago. The DMN National Retail Report-Dairy for March 4-10 noted the national weighted average advertised price for a 1 pound package of butter was $2.90, $0.06 below one week ago, and $0.12 below one year ago. The weighted average prices in the Midwest and South Central regions are $2.69 and $2.64, respectively. 2016 U.S. Butter and Milkfat Exports (USDA-FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago January Total 5.7 ... TOTAL, JAN 5.7 ... 1 Mexico 4.4 + 85 2 Canada 0.5 + 4 3 Saudi Arabia 0.2 - 57 4 South Korea 0.1 - 65 5 UAE 0.1 +206 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