MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. August 9, 2017 (Report 32)

Week after week, butter contacts continue to report strong orders. Food 
service demand continues at steady to strengthening levels. Retail demand 
has consistently improved from last year's sales numbers, also. Bulk butter 
production is active, as cream is still flowing into Class IV processing at 
relatively reasonable prices. Multiples into Class IV plants were reported 
as low as 1.23. Bulk butter prices ranged from flat market to 7 cents over 
the CME average. Contacts point to the Foreign Agricultural Service (FAS) 
export figures as another positive indicator in the butter markets, as 
Canadian buyers have significantly increased intakes of butter this year. 
The butter market tone is maintaining sturdiness. The NASS Dairy Products 
report noted U.S. butter production during June 2017 in the Central region 
totaled 57.7 million pounds, 0.4 percent higher than one year ago. Total 
U.S. butter production during June 2017 was 140.6 million pounds, 4.8 
percent lower than last year. January through June 2017 U.S. butter 
production totaled 981.6 million pounds, 1.7 percent lower than the same 
period in 2016. The CME Group monthly average price for Grade AA butter 
during July was $2.6195, up from June's $2.5688 and up from $2.2731 a year 
ago. DMN National Retail Report-Dairy for August 4-10 noted the national 
weighted average advertised price for a 1 pound package of butter is $3.57, 
$0.08 above one week ago and $0.58 higher than one year ago. The weighted 
average regional prices in the Midwest and South Central were $3.09 and 
$3.01, respectively. Wednesday at the CME Group, Grade AA butter closed at 
$2.6500, down $0.0600 from last Wednesday.

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

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

June                  8.2             +257

TOTAL, JAN - JUN     28.2             -  3
 1 Canada            14.0             +219
 2 Mexico             3.5             - 80
 3 South Korea        2.1             +234
 4 Saudi Arabia       1.8             - 29
 5 Peru               1.3             +614




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

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

June Imports 
  Total Butter, Fats, Milk (H.S. Code 0405)     6.3             -  8
  Butter
   Quota (H.S. Code 405101000)                  0.7             + 75
   Over Quota (H.S. Code 405102000)             4.1             -  9
  AMF
   Quota (H.S. Code 405901020)                  0.3             - 47
   Over Quota (H.S. Code 405902020)             1.1             +  5
  Other Milk Fat                                0.1             - 65

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

TOTAL, JAN - JUN                               37.9             - 33
 1 Ireland                                     19.0             + 28
 2 Mexico                                       6.4             - 58
 3 New Zealand                                  4.5             - 67
 4 Chile                                        2.7             + 77
 5 France                                       1.7             - 16





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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