MD_DA431 DA MD DA431 BUTTER - CENTRAL MADISON, WI. October 11, 2017 (Report 41) Butter producers are reporting that cream is still available, although availability is beginning to tighten up a bit. Cream multiples into Class IV production were reported from 1.20 to 1.24 f.o.b. Retail sales are bustling. Undoubtedly, increasing seasonal weekly advertisements are giving already consistent retail sales numbers a boost. Microfixing and print butter production are steady. Export interests are reportedly growing, as well. Some butter makers report that healthy demand is expected to remain healthy into early 2018. The butter market tone is mixed. Prices never reached the zenith that some contacts were expecting, however strong demand and relatively affordable cream supplies have Central region butter contacts viewing the market tone bullishly. Bulk butter prices are unchanged, ranging from flat market to 7 cents over the CME average. DMN National Retail Report-Dairy for October 6-12 noted the national weighted average advertised price for a 1 pound package of butter is $3.46, $0.32 below one week ago, but $0.23 higher than one year ago. The weighted average regional prices in the Midwest and South Central were $3.08 and $2.88, respectively. The NASS Dairy Products report noted U.S. butter production during August 2017 in the Central region totaled 54.9 million pounds, 8.9 percent higher than one year ago. Total U.S. butter production during August 2017 was 131.2 million pounds, 6.2 percent higher than last year. January through August 2017 U.S. butter production totaled 1.248 billion pounds, 0.7 percent lower than the same period in 2016. Wednesday at the CME Group, Grade AA butter closed at $2.3450, down $0.0100 from last Wednesday. 2017 U.S. Butter and Milkfat Exports (USDA-FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago August 6.2 +182 TOTAL, JAN - AUG 39.6 + 16 1 Canada 18.0 +180 2 Mexico 5.2 - 72 3 South Korea 3.1 +233 4 Saudi Arabia 2.3 - 23 5 Peru 1.9 +888 2017 U.S. Butter and Milkfat Imports (USDA-FAS) (Imports for Consumption) 2017 Imports % Change From (Million Lb.) 1 Year Ago August Imports Total Butter, Fats, Milk (H.S. Code 0405) 8.2 + 5 Butter Quota (H.S. Code 405101000) 2.5 +272 Over Quota (H.S. Code 405102000) 3.4 - 5 AMF Quota (H.S. Code 405901020) 0.5 - 8 Over Quota (H.S. Code 405902020) 1.7 - 41 Other Milk Fat 0.1 - 40 2017 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN - AUG 53.7 - 23 1 Ireland 28.3 + 49 2 Mexico 9.4 - 54 3 New Zealand 5.4 - 65 4 France 2.7 - 8 5 Chile 2.7 + 55 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