MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 


MADISON, WI.   March 8, 2017 (Report 10)   

Churn operations in the East continue to see heavy production volumes. 
Balancing plants are running 6-7 day churning schedules while cream 
supplies remain readily available. Inventories are building on strong 
production of both salted and unsalted butter. Overall, butter sales 
moving into March are fair to light. Producers are expressing the 
likelihood of prices strengthening, with the development of spring 
seasonal interest. Bulk prices for domestic butter sales are 5 to 7 
cents over the CME Group, based on various time frames and averages 
used. The CME Group monthly average price for Grade AA butter during 
January 2017 was $2.1534, compared to $2.0840 a year ago. Tuesday, the 
CME Group cash trading saw Grade AA butter prices settle at $2.1675, 
down $0.0125 from a week ago closing price. According to the DMN 
National Retail Report-Dairy, for March 3-9, 2017, the Northeast 
weighted average retail price for 1-pound butter was $3.36, 32 cents 
higher than the national average price, and 16 cents higher than last 
week's national average butter price. Markets in the Northeast region 
reported butter prices ranging $2.99-$4.49. In the Southeast, weighted 
average butter prices are $3.29, 25 cents above the national average. 
Prices ranged $3.28-$3.29, in retail markets surveyed. 
DAIRY PRODUCTS:  According to NASS, U.S. butter production for January 
2017, totals 177.8 million pounds, up 1.2% from last year and up 8.5% 
from December 2016. Cumulative 2017 butter production through January 
totals 177.8 million pounds, 1.2% above the same period for 2016. 
January 2017 butter production in the Atlantic region totaled 22.1 
million pounds, up 9.6% from last year and up 22.6% from December 
2016.

The Foreign Agricultural Service (FAS) reports January 2017 U.S. 
exports of butter and milkfat totaled 50.0 million pounds, a 3% 
increase from a year ago.

2017 U.S. Butter and Milkfat Exports (USDA-FAS)

                 2017 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

TOTAL, JANUARY       4.1             -  28

1 Canada             2.1             + 328
2 Mexico             0.7             -  83
3 Saudi Arabia       0.4             +  66
4 UAE                0.2             + 207
5 South Korea        0.1             + 123


1100CT daniel.johnson@ams.usda.gov 608.422.8605
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