MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   February 8, 2015 (Report 06)   

Butter production rates across the Northeast are strong in a fairly 
unsettled market. Readily available cream supplies and uneven demand 
prompt active churning at most plants. Buyers are showing restraint 
with butter purchases, as interest continues to center around short 
term or immediate needs. International interest is limited, while 
prices continue above the global marketplace. Butter inventories are 
increasing, with uneasiness from manufacturers who are concerned with 
building inventory in the current market. Retail movement of print 
butter ranges slow to fair. Bulk butter volumes are moderate to ample, 
with some stocks balanced by export assistance contracts. The current 
bulk butter prices for domestic sales are flat to 4 cents under the 
CME Group, with various time frames and averages used. Tuesday's CME 
Group cash trading saw Grade AA butter close at $2.1600, down $0.0800 
from the previous Tuesday. The CME Group monthly average price for 
Grade AA butter during January 2017 was $2.2393, compared to $2.1214 a 
year ago. According to the DMN National Retail Report-Dairy, for 
February 3-9, 2017, the national advertised weighted average price for 
1-pound butter was $3.64, up 33 cents from last week, and up 32 cents 
from a year ago. The Northeast regional price was $3.44, 7 cents more 
than last week. The Foreign Agricultural Service (FAS) reports that 
December 2016 U.S. exports of butter and milkfat totaled 5.2 million 
pounds, a 24% increase from a year ago.
DAIRY PRODUCTS:  According to NASS, U.S. butter production for 
December 2016, totals 163.8 million pounds, down 6.7% from last year, 
but up 13.3% from November 2016. Cumulative 2016 butter production 
through December totals 1.889 billion pounds, 2.2% above the same 
period for 2015. December butter production in the Atlantic region 
totaled 18.0 million pounds, down 2.8% from last year but up 25.6% 
from November 2016.


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

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

December Total        5.2             + 24

TOTAL, JAN - DEC     55.2             +  8
1 Mexico             20.7             + 83
2 Canada             19.6             +143
3 Saudi Arabia        4.0             - 76
4 South Korea         1.6             - 51
5 Taiwan              1.1             + 15


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