MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   January 11, 2017 (Report 02)   
 
NORTHEAST BUTTER: 

Cream supplies for processing butter remain readily available in the 
region. Sources note that cream supplies that had been moving into 
Canada have ended. Upon the issuance of new permits, this month, 
additional allocations will be schedule into Canada. Butter production 
outpaces current demand and is increasing producers' stocks. Buying 
interest does vary as some buyers return to the market following the 
holiday, while others are still holding off placing new orders. Bulk 
sales remain slow. Some producers and traders feel that sales activity 
will be limited to short-term or immediate needs until the butter 
market stabilizes. The f.o.b. East bulk butter price is reported 5 to 
8 cents over the market of the CME Group, with various time frames and 
averages used. Tuesday's CME Group cash trading saw Grade AA butter 
close at $2.3000, up $0.0800 from the previous Tuesday. The butter 
market undertone is unsettled. The DMN National Retail Report-Dairy, 
indicates the January 6-12, 2017 national advertised weighted average 
price for 1-pound butter was $3.35, up 66 cents from last week, but 
down 4 cents from a year ago. The Northeast region's butter price was 
$3.39, with a price range of $2.99-$4.49. The Foreign Agricultural 
Service (FAS) reports November 2016 U.S. exports of butter and milkfat 
totaled 5.8 million pounds, up 107% from a year ago. 
DAIRY PRODUCTS:  According to NASS, the U.S. butter production for 
November 2016 totals 143.7 million pounds, down 5.7% from last year, 
but up 1.5% from October 2016. Cumulative 2016 butter production 
through November totals 1.725 billion pounds, 3.0% above the same 
period for 2015. November butter production in the Atlantic region 
totaled 14.6 million pounds, up 4.7% from last year and up 7.2% from 
October 2016.


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


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

November Total        5.8             + 107

TOTAL, JAN - NOV     50.0             +   7
 1 Mexico            20.1             + 122
 2 Canada            15.9             + 134
 3 Saudi Arabia       3.8             -  77
 4 South Korea        1.4             -  55
 5 Taiwan             0.9             +  11



1100CT daniel.johnson@ams.usda.gov 
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