MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. March 08, 2017 (Report 10)

Butter producers continue to see plenty of cream available in the Central 
United States. Cream suppliers are receiving more inquiries from Class II 
users, even so, butter makers report abundant cream is still finding its way 
into churns. Butter sales are generally fair to strong. Spring orders have 
arrived for butter manufacturers and some report that demand is better than 
expected. The market tone remains steady and CME prices, which averaged 
$2.1795 last week, have some butter contacts confident in the near term 
butter market. Production of butter is active. With current spot market 
cream prices, butter makers are finding it economically advantageous to send 
the cream to churns in lieu of selling it. Bulk butter inventories are 
building. DMN National Retail Report-Dairy for March 3-9 noted the national 
weighted average advertised price for a 1 pound package of butter is $3.04, 
$0.11 below one week ago, but $0.14 higher than one year ago. The weighted 
average regional prices in the Midwest and South Central were $2.19 and 
$3.53, respectively. The NASS Dairy Products report noted U.S. butter 
production during January 2017 in the Central region totaled 75.3 million 
pounds, 9.2 percent higher than one year ago. Total U.S. butter production 
during January 2017 was 177.8 million pounds, 1.2 percent higher than last 
year. The CME Group monthly average price for Grade AA butter during 
February was $2.1534, down from January's $2.2393, but up from $2.0840 a 
year ago. According to FAS, January 2017 U.S. butter exports totaled 4.1 
million pounds, 28% below last year. Bulk butter prices reported ranged from 
1 to 6 cents over the market, with various periods and averages used. 
Wednesday at the CME Group, Grade AA butter closed at $2.1975, down $.0350 
from last Wednesday.

2017 U.S. Butter and Milkfat Exports (USDA-FAS)

                 2017 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

TOTAL, JANUARY        4.1             - 28
 1 Canada             2.1             +328
 2 Mexico             0.7             - 83
 3 Saudi Arabia       0.4             + 66
 4 UAE                0.2             +207
 5 South Korea        0.1             +123



1530CT Israel.Weber@ams.usda.gov (608)422-8601
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-
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