MD_DA431 DA MD DA431 BUTTER - CENTRAL MADISON, WI. May 10, 2017 (Report 19) Cream into Class IV manufacturing, which displayed some indications of tightening last week, is readily available this week. Class IV cream multiples were reported from 1.15 to 1.18. Butter contacts report that ice cream producers have yet to pull down the overall cream supply, as weather has been cool and wet in the Central U.S. Butter retail sales were reportedly slower, after recent weeks have been steady. Butter production reports vary, but some producers are continuing production at steady rates in order to store bulk supplies for later in the year, taking advantage of the current cream availability. The butter market tone is fair, and butter stores continue to build. DMN National Retail Report-Dairy for May 5-11 noted the national weighted average advertised price for a 1 pound package of butter is $2.85, $0.37 below one week ago and $0.06 lower than one year ago. The weighted average regional prices in the Midwest and South Central were $2.35 and $2.60, respectively. The NASS Dairy Products report noted U.S. butter production during March 2017 in the Central region totaled 77.5 million pounds, 6.7 percent higher than one year ago. Total U.S. butter production during March 2017 was 175.5 million pounds, 0.3 percent higher than last year. January through March 2017 U.S. butter production totaled 514.4 million pounds, 0.1 percent higher than the same period in 2016. Bulk butter prices remained 2 to 7 cents over the market, with various periods and averages used. Wednesday at the CME Group, Grade AA butter closed at $2.1300, up $.0100 from last Wednesday. This week, a cooperative export assistance program accepted requests for 440,525 pounds (200 metric tons) of butter. So far this year, the program has accepted assistance requests for 1.9 million pounds of butter. 2017 U.S. Butter and Milkfat Exports (USDA-FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago March 3.3 - 55 TOTAL, JAN - MAR 11.5 - 48 1 Canada 5.0 +163 2 Mexico 2.0 - 88 3 Saudi Arabia 1.0 - 31 4 South Korea 0.9 +128 5 UAE 0.4 +173 2017 U.S. Butter and Milkfat Imports (USDA-FAS) 2017 Imports % Change From (Million Lb.) Last Month March Imports Total Butter and Milk Fat 5.8 + 11 Butter Quota (H.S. Code 405101000) 0.6 + 22 Over Quota (H.S. Code 405102000) 2.9 - 29 AMF Quota (H.S. Code 405901020) 1.2 - 3 Over Quota (H.S. Code 405902020) 0.8 + 14 Other Milk Fat 0.4 +1141 2017 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN - MAR 18.5 - 48 1 Ireland 8.2 - 1 2 New Zealand 3.3 - 71 3 Mexico 2.5 - 67 4 Chile 1.3 - 1 5 United Kingdom 1.0 + 58 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