MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. December 7, 2016 (Report 49)

In the Central region, most butter makers are wrapping up production 
related to the year-end holiday season. Some processors are still 
buying a few spot loads of cream to support the active butter output. 
At this point, churners are running operations at full capacity. 
However, production rates are expected to steadily decrease during 
the next 5-7 days as the year-end holiday approaches. Bulk stocks 
continue declining in most processing facilities. Nevertheless, some 
butter manufacturers anticipate switching from print to bulk by the 
end of next week. Bulk butter prices reported ranged from 3 to 7 
cents over the market, with various periods and averages used. The 
DMN National Retail Report-Dairy for December 2-8 noted the national 
weighted average advertised price for a 1 pound package of butter is 
$2.98, $0.38 above one week ago, but $0.31 below one year ago. The 
weighted average price in the Midwest and Central regions are $2.42 
and $2.66, respectively. The NASS Dairy Products report noted U.S. 
butter production during October 2016 in the Central region totaled 
59.0 million pounds, 2.0 percent lower than one year ago. Total U.S. 
butter production during October 2016 was 143.0 million pounds, 3.6 
percent lower than last year. During January-October 2016, U.S. 
butter production totaled 1.582 billion pounds, 4.0 percent more than 
the same period in 2015. The CME Group monthly average price for 
Grade AA butter during November was $1.9899, compared to $2.8779 a 
year ago. Wednesday at the CME Group, Grade AA butter closed at 
$2.0950, down $.1350 from last Wednesday. According to FAS, January-
October U.S. butter exports total 44.1 million pounds, no change from 
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

October Total         6.3             +215

TOTAL, JAN - OCT     44.1              ...
1 Mexico             19.3             +128
2 Canada             12.8             +128
3 Saudi Arabia        3.1             - 81
4 South Korea         1.2             - 59
5 China               0.9             +249



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. 
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