MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   January 25, 2017 (Report 04)   
 
NORTHEAST BUTTER: 

With the volume of cream offered to manufacturing remaining plentiful, 
butter churns are running at near capacity levels in some production 
venues. Some suppliers are moving cream volumes long distances in 
order to clear loads. The likelihood of butter output rates slowing, 
in the near-term, is doubtful as some processors look to build bulk 
butter inventories. Print butter interest is mostly light, typical for 
this time of year. Wholesalers are ordering as needed some feel prices 
may in time, move lower. Some buyers are not sure how to plan for 
summer storage needs at this time. Overall, buying demand is fair. The 
market undertone is unsettled as prices inch lower. The f.o.b. East 
bulk butter price is reported 5-8 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 $2.2175, down $0.0225 from 
the previous Tuesday. The DMN National Retail Report-Dairy, indicates 
the January 20-26, 2017 national advertised weighted average price for 
1-pound butter was $3.25, down 30 cents from last week, but up 5 cents 
from a year ago. The Northeast region's butter price was $3.11, down 
84 cents from last week, with a price range of $2.49-$3.59. The 
Foreign Agricultural Service (FAS) reports December 2016 U.S. imports 
of butter totaled 2.3 million pounds, a 267.8% increase from a year 
ago.
COLD STORAGE:  According to NASS, U.S. stocks of butter as of 
December, 2016 were 175.0 million pounds, up 13% from last year, and 
9% higher from last month. Bulk stocks in all warehouses were 155.1 
million pounds last year at this time.

2016 U.S. Butter Imports (USDA-FAS)

                 2016 Imports      % Change From      % of
                 (Million Lb.)       1 Year Ago       Yearly Quota


December Quota          2.3          + 267.8          14.7

TOTAL, Jan - Dec
High Tier           Not available at time of publication.
Quota                  14.9          -   1.2          97.1


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