MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. September 7, 2016 (Report 36)

This week, butter production is mixed in the Central region. Some 
butter manufacturers report having enough cream supplies for churning 
and are running operations at full capacity. However, cream volumes 
are very tight in a few processing plants as cream is clearing into 
Class II and Class III. As a result, butter churning is sporadic in 
those facilities. Some processors are actively microfixing bulk 
butter to meet the current high demand for print butter from 
restaurants and retailers. The market undertone is steady. 
Inventories vary from plant to plant. Bulk butter prices reported 
ranged from market to 7.5 cents over the market, with various periods 
and averages used. The DMN National Retail Report-Dairy for September 
2-8 noted the national weighted average advertised price for a 1 
pound package of butter is $3.84, $0.84 above one week ago and $0.89 
higher than one year ago. The regional weighted average prices in the 
Midwest and South Central are $2.92 and $2.94, respectively. The CME 
Group monthly average price for Grade AA butter during August was 
$2.1776, compared to $2.1542 a year ago. The NASS Dairy Products 
report noted U.S. butter production during July 2016 in the Central 
region totaled 53.9 million pounds, 1.8 percent lower than one year 
ago. Total U.S. butter production during July 2016 was 143.6 million 
pounds, 6.0 percent higher than last year. During January-July 2016, 
U.S. butter production totaled 1,173.4 million pounds, 5.6 percent 
more than the same period in 2015. The Foreign Agricultural Service 
(FAS) reports July 2016 U.S. exports of butter and milkfat totaled 
2.8 million pounds, a 44% decline from a year ago. Wednesday at the 
CME Group, Grade AA butter closed at $2.0350, down $.0450 from last 
Wednesday.


2016 U.S. Butter and Milkfat Exports (USDA-FAS)

                 2016 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

July Total            2.8             - 44

TOTAL, JAN - JUL     31.9             -  9
1 Mexico             17.7             +142
2 Canada              5.4             + 36
3 Saudi Arabia        2.8             - 78
4 South Korea         0.9             - 67
5 China               0.8             +522


1530CT Angel.Teran@ams.usda.gov 608.557.7011
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-
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