MD_DA431 DA MD DA431 BUTTER - CENTRAL MADISON, WI. July 12, 2017 (Report 28) Sales reports on butter are steady to strong. Some butter producers relay that retail butter sales are on par with this time last year. Butter production is ongoing, although some butter producers are opting to sell cream on the spot market in lieu of producing extra butter. Cream multiples into Class IV production are similar to last week, around 1.20 f.o.b. There is some indication of firming cream markets, as seasonal temperatures are taking their toll on overall milk production. However, some butter manufacturers suggest the current cream availability will continue for the near term, as Class II manufacturers entered cream buying relatively early to avoid an expected tightening of supplies in the summer months. Some producers report having a bit more salted butter inventories than unsalted, but overall inventories are manageable and in good balance. Bulk butter sales ranged from $.02 to $.07 over the CME average. The market tone is solid. A number of contacts anticipate steady market prices, in the current $2.6000 range, for months to come. Wednesday at the CME Group, Grade AA butter closed at $2.5850, down $0.0600 from last Wednesday. DMN National Retail Report-Dairy for July 7-13 noted the national weighted average advertised price for a 1 pound package of butter is $3.35, $0.51 below one week ago, but $0.16 higher than one year ago. The weighted average regional prices in the Midwest and South Central were $2.73 and $2.87, respectively. The NASS Dairy Products report noted U.S. butter production during May 2017 in the Central region totaled 70.8 million pounds, 1.3 percent higher than one year ago. Total U.S. butter production during May 2017 was 163.5 million pounds, 1.5 percent lower than last year. January through May 2017 U.S. butter production totaled 841.0 million pounds, 1.2 percent lower than the same period in 2016. According to FAS, May 2017 U.S. butter exports totaled 4.3 million pounds, 187% above last year. 2017 U.S. Butter and Milkfat Exports (USDA-FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago May 4.3 + 187 TOTAL, JAN - MAY 20.0 - 25 1 Canada 8.8 + 148 2 Mexico 3.0 - 83 3 South Korea 1.7 + 194 4 Saudi Arabia 1.4 - 35 5 Peru 1.2 + 852 According to FAS, January-May U.S. butter imports total 31.6 million pounds, a 34% decrease compared to same time span last year. 2017 U.S. Butter and Milkfat Imports (USDA-FAS) (Imports for Consumption) 2017 Imports % Change From (Million Lb.) Last Month May Imports Total Butter, Fats, Milk (H.S. Code 0405) 6.9 ... Butter Quota (H.S. Code 405101000) 0.4 - 29 Over Quota (H.S. Code 405102000) 4.5 + 2 AMF Quota (H.S. Code 405901020) 0.6 + 53 Over Quota (H.S. Code 405902020) 1.0 - 28 Other Milk Fat 0.4 +214 2017 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN - MAY 31.6 - 34 1 Ireland 15.5 + 42 2 Mexico 5.1 - 59 3 New Zealand 4.2 - 68 4 Chile 2.3 + 64 5 France 1.5 - 23 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