MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. January 11, 2017 (Report 2)

With even more educational institutions, namely colleges and 
universities, reopening this week, cream from bottlers is plentiful 
for butter producers across the Central region of the U.S. However, 
contacts report a slight uptick in cream demand from Class II 
producers aiming to ramp up ice cream production. With the current 
availability of cream, butter production continues to be active. Most 
processors continue to focus on bulk production, although some 
producers report moving primarily to print in order to prepare for 
the expected strong retail demand at the end of January and into 
early February. Bulk inventories continue building into storage. 
Currently, butter demand varies somewhat as some producers report 
that sales are continuing relatively strongly, while others report a 
slowdown typical for this time of year. DMN National Retail Report-
Dairy for January 6-12 noted the national weighted average advertised 
price for a 1 pound package of butter is $3.35, $0.66 above one week 
ago, but $0.04 lower than one year ago. The weighted average prices 
in the Midwest and South Central regions are $3.00 and $3.12, 
respectively. The NASS Dairy Products report noted U.S. butter 
production during November 2016 in the Central region totaled 59.8 
million pounds, 2.9 percent lower than one year ago. Total U.S. 
butter production during November 2016 was 143.7 million pounds, 5.7 
percent lower than last year. During January-November 2016, U.S. 
butter production totaled 1.725 billion pounds, 3.0 percent more than 
the same period in 2015. Bulk butter prices reported ranged from 2 to 
6 cents over the market, with various periods and averages used. 
Wednesday at the CME Group, Grade AA butter closed at $2.2775, up 
$.0175 from last Wednesday.

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

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

November Total        5.8             +107

TOTAL, JAN - NOV     50.0             +  7
1 Mexico             20.1             +122
2 Canada             15.9             +134
3 Saudi Arabia        3.8             - 77
4 South Korea         1.4             - 55
5 Taiwan              0.9             + 11

 
1530CT Israel.Weber@ams.usda.gov (608)557-7011
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home