MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   October 12, 2016 (Report 41)   
 
NORTHEAST BUTTER:   

With cream supplies in a readily available phase, some butter 
manufacturers are increasing churning rates as surplus cream 
moves into production. Print operations are micro-fixing bulk 
supplies while rotating current production into inventory. Print 
retail orders are good and building for yearend/holiday needs, 
as those orders ship. Bulk butter prices range 5-8 over the 
market of the CME Group, with various time frames and averages 
used. The butter market's undertone is steady. Tuesday's CME 
Group cash trading saw Grade AA butter close at $1.8125, down 5 
cents from the previous week. The Foreign Agricultural Service 
(FAS) reports August 2016 U.S. butter and milkfat exports 
totaled 2.2 million pounds, down 59% from a year ago. According 
to the DMN National Retail Report-Dairy, for October 7-13, 2016, 
the national advertised weighted average price for 1-pound 
butter was $3.23, down 15 cents from last week, but up 14 cents 
from a year ago. The Northeast regional price was $3.32, 40 
cents below the previous week's average price. In the Southeast, 
the butter price averages $2.90, a 6 cents drop from last week's 
average price. 
DAIRY PRODUCTS:  According to NASS, U.S. butter production for 
August 2016, totals 129.0 million pounds, up 0.7% from last 
year, but down 10.4% from a month ago. Cumulative 2016 butter 
production through August totals 1.3 billion pounds, 5.1% above 
the same period for 2015. August production in the Atlantic 
region totaled 8.1 million pounds, down 8.6% from last year and 
down 28.7% from a month ago.


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

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

August Total          2.2             - 59

TOTAL, JAN - AUG     34.1             - 16
 1 Mexico            18.2             +139
 2 Canada             6.4             + 44
 3 Saudi Arabia       3.0             - 82
 4 South Korea        0.9             - 66
 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