MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. April 5, 2017 (Report 14)

Some butter producers in the Central region report production is lighter than 
in previous weeks, while others continue at the same active levels. Cream is 
available, but reported multiples of 1.12 to 1.18 are indicative of tightening 
availability. Butter makers also report receiving fewer offers from cream 
suppliers. Cream suppliers report upticks in Class II and Class III orders are 
starting to pull some cream away from butter churns. Butter demand is steady. 
However, some contacts expect butter orders to wane after this week, as they 
view this as the last spring holiday push. Other contacts expect recent 
positive media coverage to keep retail butter sales steady. Butter inventories 
are steadily growing. The butter market tone is stable. DMN National Retail 
Report-Dairy for March 31-April 6 noted the national weighted average 
advertised price for a 1 pound package of butter is $3.07, $0.08 above one week 
ago and $0.11 higher than one year ago. The weighted average regional prices in 
the Midwest and South Central were $2.50 and $2.99, respectively. The CME Group 
monthly average price for Grade AA butter during March was $2.1392, down from 
February's $2.1534, but up from $1.9605 a year ago. Bulk butter prices reported 
ranged from 2 to 7 cents over the market, with various periods and averages 
used. The NASS Dairy Products report noted U.S. butter production during 
February 2017 in the Central region totaled 70.5 million pounds, 3.4 percent 
lower than one year ago. Total U.S. butter production during February 2017 was 
164.3 million pounds, 5.8 percent lower than last year. January through 
February 2017 U.S. butter production totaled 342.1 million pounds, 2.3 percent 
lower than the same timeframe in 2016. Wednesday at the CME Group, Grade AA 
butter closed at $2.1450, up $.0450 from last Wednesday.

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

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

February 	      4.1  	      - 54

TOTAL, JAN - FEB      8.2             - 44
 1 Canada             3.9             +224
 2 Mexico             1.4             - 88
 3 Saudi Arabia       0.8             - 21
 4 South Korea        0.4             + 70
 5 UAE                0.4             +198




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-home