MD_DA431 DA MD DA431 BUTTER - CENTRAL MADISON, WI. May 18, 2016 (Report 20) Butter production is steady to fractionally lower this week. Many producers report either pulling bulk butter out of the freezers or purchasing bulk butter for microfixing. Cream is still readily available and butter makers are facing few to no obstacles finding spot loads of cream. A handful of manufacturers are responding to requests for cream from ice cream makers. This is limiting their butter production slightly. Interest from food service and retail are both strong. Many manufacturers feel that demand is characteristic for this time of year. Industry participants seem comfortable with current inventory levels. Others are working hard to build stocks for Q3 and Q4. Bulk butter prices reportedly range from market to 10 cents over the market, with various time frames and averages used. The market undertone is steady. The DMN National Retail Report-Dairy for May 13- 19 noted the national weighted average advertised price for a 1 pound package of butter was $2.75, $0.16 below one week ago, and $0.14 below one year ago. The weighted average price in the South Central region is $2.40 with a price range of $1.89-$2.55. Prices in the Midwest region for 1 pound packages of butter range from $1.99-$2.50 with a weighted average price of $2.27. Wednesday at the CME Group, Grade AA butter closed at $2.0525, unchanged from last Wednesday. 2016 U.S. Butter Imports (USDA-FAS) 2016 Imports % Change From % of (Million Lb.) 1 Year Ago Yearly Quota April Quota 0.7 - 71.7 4.3 TOTAL, JAN - APR High Tier 11.2 + 375.9 ... Quota 5.0 - 40.0 32.4 1530CT Amy.L.Schmitz@ams.usda.gov 608.557.7004 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/map/da-home