MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. June 7, 2017 (Report 23)

Butter demand is up this week. Domestically, retail and food service 
demand remains steady to strong, and international interests have 
increased. Butter production is steady, as producers try to get ahead 
of export opportunities and fall storage. Cream, in the Central 
region, is still readily available. Cream multiples for butter churns 
remained around 1.15. However, as Class II manufacturers are nearing 
peak season, Central region butter producers expect a forthcoming 
tightness. The butter market tone is generally healthy. Prices on the 
CME have continued upward, but some contacts suggest there is a 
chance that U.S. butter prices may end up outpacing global demand. 
Wednesday at the CME Group, Grade AA butter closed at $2.4625, up 
$0.0525 from last Wednesday. Reported bulk butter prices are flat 
market to 7 cents over the market. DMN National Retail Report-Dairy 
for June 2-8 noted the national weighted average advertised price for 
a 1 pound package of butter is $3.31, $0.26 below one week ago, but 
$0.03 higher than one year ago. The weighted average regional prices 
in the Midwest and South Central were $2.95 and $2.69, respectively. 
The CME Group monthly average price for Grade AA butter during May 
was $2.2684, up from April's $2.0992 and up from $2.0554 a year ago. 
The NASS Dairy Products report noted U.S. butter production during 
April 2017 in the Central region totaled 70.1 million pounds, 1.8 
percent lower than one year ago. Total U.S. butter production during 
April 2017 was 164.1 million pounds, 4.1 percent lower than last 
year. January through April 2017 U.S. butter production totaled 679.0 
million pounds, 0.9 percent lower than the same period in 2016. 
According to FAS, April 2017 U.S. butter exports totaled 4.2 million 
pounds, 36% above last year.


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

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

April                 4.2             + 36

TOTAL, JAN - APR     15.7             - 37
 1 Canada             7.0             +139
 2 Mexico             2.4             - 86
 3 South Korea        1.3             +151
 4 Saudi Arabia       1.2             - 45
 5 Peru               0.8             +845
 
According to FAS, January through April 2017 U.S. butter imports 
totaled 24.7 million pounds, 41 percent lower than the same timeframe 
last year. 

2017 U.S. Butter and Milkfat Imports (USDA-FAS)
(Imports for Consumption)
       

                                           2017 Imports      % Change From
                                           (Million Lb.)       Last Month

April Imports 
  Total Butter, Fats, Milk (H.S. Code 0405)     6.9             + 24
  Butter
   Quota (H.S. Code 405101000)                  0.6              ...
   Over Quota (H.S. Code 405102000)             4.4             + 50
  AMF
   Quota (H.S. Code 405901020)                  0.4             - 67
   Over Quota (H.S. Code 405902020)             1.4             + 85
  Other Milk Fat                                0.1             + 63

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

TOTAL, JAN - APR                               24.7             - 41
1 Ireland                                      11.9             + 29
2 Mexico                                        3.9             - 61
3 New Zealand                                   3.8             - 69
4 Chile                                         1.7             + 24
5 France                                        1.1             - 24



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