MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. November 9, 2016 (Report 45)


Butter production is steady in the Central region. Cream requests from Class II 
processors are increasing in order to meet the strong year-end holiday 
manufacturing needs. Consequently, cream supplies are tightening. However, there 
are sufficient cream volumes clearing into churns. Some processors are 
microfixing bulk to supplement print butter output. Retail and food services 
requests remain strong. Some Thanksgiving holiday orders are in the final phases 
of production and delivery. Bulk inventories are steady to lower while print 
supplies are in balance. 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 November 4-10 noted the national weighted 
average advertised price for a 1 pound package of butter is $2.85, down $0.46 
from one week ago and $0.23 below one year ago. The weighted average prices in 
the Midwest and South Central regions are $2.47 and $2.67, respectively. The NASS 
Dairy Products report noted U.S. butter production during September 2016 in the 
Central region totaled 53.5 million pounds, 2.8 percent higher than one year ago. 
Total U.S. butter production during September 2016 was 133.1 million pounds, 0.4 
percent lower than last year. During January-September 2016, U.S. butter 
production totaled 1.437 billion pounds, 4.7 percent more than the same period in 
2015. The CME Group monthly average price for Grade AA butter during October was 
$1.8239, compared to $2.4757 a year ago. According to FAS, January-September U.S. 
butter exports total 37.8 million pounds, 10% below last year during the same 
time span. Wednesday at the CME Group, Grade AA butter closed at $1.9100, up 
$.0200 from last Wednesday. 

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

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

September Total       3.7             +131

TOTAL, JAN - SEP     37.8             - 10
1 Mexico             19.0             +143
2 Canada              7.7             + 54
3 Saudi Arabia        3.1             - 81
4 South Korea         1.0             - 64
5 China               0.9             +561


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