MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   September 7, 2016 (Report 36)   

NORTHEAST BUTTER:

Butter production levels are increasing. Butter makers in the 
region are adding to stocks through both churning and reworking 
processes. In addition, operations are evaluating the market as 
they consider domestic customers' yearend holiday butter needs. 
The current bulk butter price for domestic sales are reported at 
3-5 cents over the market of the CME Group, with various time 
frames and averages used. Inventories are fair. According to the 
DMN National Retail Report-Dairy, for September 2-8, 2016, the 
national weighted average ad price for 1-pound butter is $3.84, 
up 84 cents from last week and up 89 cents from a year ago. The 
Northeast regional price is $3.86, 2 cents higher than the 
advertised national average. In the Southeast, butter prices 
average $3.95, up 65 cents over last week's average. Tuesday's 
CME Group cash trading saw Grade AA butter close at $2.0375, 
down $0.0725 from a week ago. The CME Group monthly average 
price for Grade AA butter during August was $2.0375, compared to 
$2.1542 a year ago. The Foreign Agricultural Service (FAS) 
reports July 2016 U.S. exports of butter and milkfat totals 2.8 
million pounds, a 44% decline from a year ago.
DAIRY PRODUCTS:  According to NASS, U.S. butter production for 
July 2016, totals 143.595 million pounds, up 6.0% from last 
year, but down 5.1% from a month ago. Cumulative 2016 butter 
production through July totals 1.2 billion pounds, 5.6% above 
the same period for 2015. July butter production in the Atlantic 
region totaled 10.9 million pounds, down 5.5% from last year and 
20.7% from a month ago.


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

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

July Total            2.8             - 44

TOTAL, JAN - JUL     31.9             -  9
 1 Mexico            17.7             +142
 2 Canada             5.4             + 36
 3 Saudi Arabia       2.8             - 78
 4 South Korea        0.9             - 67
 5 China              0.8             +522


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-home