MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. October 5, 2016 (Report 40)
Butter manufacturing is mixed in the Central region. A few churn 
operators are curtailing production due to some operational issues in 
the plant. On the other hand, some butter processors are running 
operation schedules near to full capacity in order to meet current 
buyers' needs and the expected high demand in Q4. Microfixing is 
active in some plants. Print butter sales to retailers and food 
service are strong this week. Some manufacturers are clearing bulk 
butter stocks in the f.o.b. spot market. Meanwhile, buyers' interest 
is inching up, as prices continue trending down at the CME Group. 
Inventories are mixed throughout the region. Bulk butter prices 
reported ranged from one cent under market to 7 cents over the 
market, with various periods and averages used. The DMN National 
Retail Report-Dairy for September 30 to October 6 noted the national 
weighted average advertised price for a 1 pound package of butter is 
$3.38, 19 cents above one week ago and 6 cents higher than one year 
ago. The regional weighted average prices in the Midwest and South 
Central are $2.92 and $3.00, respectively. The NASS Dairy Products 
report noted U.S. butter production during August 2016 in the Central 
region totaled 50.6 million pounds, 1.0 percent higher than one year 
ago. Total U.S. butter production during August 2016 was 129.0 
million pounds, 0.7 percent higher than last year. During January-
August 2016, U.S. butter production totaled 1,302.9 million pounds, 
5.1 percent more than the same period in 2015. The CME Group monthly 
average price for Grade AA butter during September was $1.9950, 
compared to $2.6690 a year ago. Wednesday at the CME Group, Grade AA 
butter closed at $1.8500, down 7 cents from last Wednesday. According 
to FAS, January-August U.S. butter exports total 34.1 million pounds, 
16% below last year during the same time span. 
2016 U.S. Butter and Milkfat Exports (USDA-FAS)

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

August Total          2.2             - 59

TOTAL, JAN - AUG     34.1             - 16
 1 Mexico            18.2             +139
 2 Canada             6.4             + 44
 3 Saudi Arabia       3.0             - 82
 4 South Korea        0.9             - 66
 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-home