MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   December 7, 2016 (Report 49)   
 
NORTHEAST BUTTER:  

Butter production is active but tends to vary. Some balancing 
facilities have adequate cream supply for customers' needs, but 
limited surplus for churning. Good demand is prompting strong sales 
for the bulk and print butter categories. Manufacturers looking to 
fill January 2017 customer deliveries are pulling on the market's bulk 
supplies. Sources suggest that recent price fluctuations at the CME 
result from strong demand and diminished availability, as some 
suppliers back off orders. Overall, the market undertone is unsettled. 
The DMN National Retail Report-Dairy, for December 2-8, 2016, noted 
the national advertised weighted average price for 1-pound butter was 
$2.98, up 38 cents from last week, but down 31 cents from a year ago. 
The Northeast regional price was $2.85, with a price range of $2.50-
$3.99. In the Southeast, the butter price averages $2.99, down 15 
cents from the previous week. The CME Group monthly average price for 
Grade AA butter through November 2016 was $1.9899, compared to $2.8779 
a year ago. Tuesday's CME Group cash trading saw Grade AA butter close 
at $2.1200, up $0.0200 from the previous week. The current bulk butter 
price for domestic sales are reported 5-8 cents over the market of the 
CME Group, with various time frames and averages used.
DAIRY PRODUCTS:  According to NASS, U.S. butter production for July 
2016, totals 143.028 million pounds, down 3.6% from last year, but up 
5.7% from a month ago. Cumulative 2016 butter production through 
October totals 1.6 billion pounds, 4.0% above the same period for 
2015. October butter production in the Atlantic region totaled 14.3 
million pounds, down 9.2% from last year, but up 1.0% from a month 
ago. 

The Foreign Agricultural Service (FAS) reports October 2016 U.S. 
exports of butter and milkfat totaled 6.3 million pounds, a 215% 
increase from a year ago.


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


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

October Total        6.3              + 215

TOTAL, JAN - OCT    44.1                ...

1 Mexico            19.3              + 128
2 Canada            12.8              + 128
3 Saudi Arabia       3.1              -  81
4 South Korea        1.2              -  59
5 China              0.9              + 249


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