MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   May 11, 2016 (Report 19)   


NORTHEAST BUTTER:   

As the spring flush prompts elevated regional milk production, most area 
churns are operating at a steady to higher rate. Cream supplies are heavy 
throughout the Northeast, consequently limiting trading venues for clearing 
surplus cream. As a result, butter makers are routinely processing in-house 
cream volumes. Producers' bulk supplies are growing, although the majority 
of inventory is committed for near term customer utilization. Retail demand 
is good for private labels. Loads moving through export channels are fair. 
The market undertone is unsettled. The current bulk butter prices for 
domestic sales are reported 4-6 cents over the market of the CME Group, with 
various time frames and averages used. According to the DMN National Retail 
Report-Dairy, for May 6-12, 2016, the national weighted average advertised 
price for 1-pound butter was $2.91, down 18 cents from a year ago and 12 
cents from last week. The Northeast regional price was $3.12, an 11 cents 
decline from the previous week. Southeast butter was priced at $2.53, a 
decline of 52 cents compared to a week ago. The Foreign Agricultural Service 
(FAS) reports March 2016 U.S. exports of butter and milkfat totaled 7.3 
million pounds, a 26% increase from a year ago.
DAIRY PRODUCTS:  According to NASS, U.S. butter production for March 2016 
totals 182.0 million pounds, up 8.6% from last year and 4.4% from a month 
ago. Cumulative production totals 532.0 million pounds, up 7.0% from last 
year at this time. Butter output in the Atlantic region totals 18.9 million 
pounds, up 4.4% from last year and 1.0% from a month ago.

2016 U.S. Butter and Milkfat Exports (USDA-FAS)

                 2016 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

March Total          7.3             + 26

TOTAL, JAN - MAR    22.1             + 29
1 Mexico            16.5             +219
2 Canada             1.9             + 38
3 Saudi Arabia       1.4             - 77
4 South Korea        0.4             - 56
5 Taiwan             0.2             + 32


1100CT daniel.johnson@ams.usda.gov 608.557.7006
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-
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