MD_DA410 DA MD DA410 BUTTER - NORTHEAST MADISON, WI. November 9, 2016 (Report 45) NORTHEAST BUTTER: Butter churning remains active at moderate to high levels to service holiday demand. Because seasonal butter orders persist, in higher volumes, plants continue to pull additional stocks from cold storage for processing and packaging customers' thriving print order needs. In general, most processors are cautiously keeping stocks in balance, on the low side, while expecting prices to drop when holiday orders are completed. Class II product demand is seasonally strong and pulling ample volumes of cream. This week, reported bulk butter transactions included prices ranging 4 to 8 over the CME Group with various time frames and averages used. Tuesday's CME Group cash trading saw Grade AA butter close at $1.9000, up $0.0200 from the previous week. The CME Group monthly average price for Grade AA butter during October 2016 was $1.8239, compared to $2.4757 a year ago. According to the DMN National Retail Report-Dairy, for November 4-10, 2016, the national advertised weighted average price for 1-pound butter was $2.85, down 46 cents from last week and down 23 cents from a year ago. The Northeast regional price was $3.07, 5 cents more than last week. In the Southeast, the butter price averages $2.50, a decline of 94 cents over the previous week's average price. The Foreign Agricultural Service (FAS) reports January-September 2016 U.S. exports of butter and milkfat total 37.8 million pounds, a 10% decline from a year ago. 2016 U.S. Butter and Milkfat Exports (USDA-FAS) 2016 Exports % Change From (Million Lb.) 1 Year Ago September Total 3.7 +131 TOTAL, JAN - SEP 37.8 - 10 1 Mexico 19.0 +143 2 Canada 7.7 + 54 3 Saudi Arabia 3.1 - 81 4 South Korea 1.0 - 64 5 China 0.9 +561 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