MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. September 13, 2017 (Report 37)

Demand for butter, primarily in the retail sector, remains healthy for 
Central region producers. European exports and purchases have picked up as 
well. Cream remains available for seasonally active butter production. Cream 
multiples were reported at or around 1.21 f.o.b. into Class IV production. 
The sliding market prices have some butter contacts questioning when and if 
CME prices will start to increase. As recently as one month ago, contacts 
suggested a $3.00 CME price was a solid possibility. Now, butter contacts 
are unclear whether the markets will find their stride during the typical 
fall strong season. Bulk butter prices remained at 1.5 to 7 cents over the 
CME average. DMN National Retail Report-Dairy for September 8-14 noted the 
national weighted average advertised price for a 1 pound package of butter 
is $3.49, $0.07 below one week ago, but $0.20 higher than one year ago. The 
weighted average regional prices in the Midwest and South Central were $3.29 
and $2.50, respectively. Wednesday at the CME Group, Grade AA butter closed 
at $2.4175, down $0.0225 from last Wednesday.

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

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

July Imports 
  Total Butter, Fats, Milk (H.S. Code 0405)     7.7             + 30
  Butter
   Quota (H.S. Code 405101000)                  2.3             +266
   Over Quota (H.S. Code 405102000)             3.7             + 27
  AMF
   Quota (H.S. Code 405901020)                  0.4             + 24
   Over Quota (H.S. Code 405902020)             1.2             - 35
  Other Milk Fat                                0.1             - 40

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

TOTAL, JAN - JUL                               45.5             - 27
 1 Ireland                                     23.6             + 40
 2 Mexico                                       7.8             - 55
 3 New Zealand                                  5.0             - 65
 4 Chile                                        2.7             + 66
 5 France                                       2.3             -  3

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

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

July                  5.2             + 86

TOTAL, JAN - JUL     33.4             +  5
 1 Canada            15.4             +186
 2 Mexico             4.4             - 75
 3 South Korea        2.5             +193
 4 Saudi Arabia       2.3             - 19
 5 Peru               1.9             +934


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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