MD_DA410   
DA  
MD DA410 BUTTER - NORTHEAST

MADISON, WI May 10, 2017 (REPORT 19)

Northeast butter markets are mixed, as prices continue to fluctuate. 
The current bulk butter prices for domestic sales are reported 5-7 
cents over the market of the CME Group, with various time frames and 
averages used. Retail interest is steady to strong, for both salted 
and unsalted butter. Overall, sales are generally steady this week. At 
the end of last week, into this week, the CME Group cash trading for 
butter has had an uptick in trading activity. Butter production is 
continuous in some plants as heavy cream volumes clear to churns. 
Although, in some Eastern areas, some plants are starting to slow 
production down as milk production starts to come down. Salted 
production is active in most plants, and unsalted production is steady 
to limited. Stocks are manageable to building, as plants are gearing 
up for decreased churning in the summer months. The demand is steady 
for butter and the market tone is unchanged. Tuesday, the CME Group 
cash trading saw Grade AA butter prices close at $2.1050, down 
$0.0100 from last Tuesday's closing price. This week, a 
cooperative export assistance program accepted requests for export 
assistance to sell 440,525 pounds (200 metric tons) of butter. 
According to the DMN National Retail Report-Dairy, for May 5-11, 2017, 
the Northeast weighted average retail price for 1-pound butter was 
$3.51, 66 cents higher than the national average price and 18 cents 
higher than last week's Northeast average butter price. Retail markets 
in the region reported butter prices ranging $2.50-$4.99.  
DAIRY PRODUCTS:  According to NASS, U.S. butter production for March 
2017, totals 175.5 million pounds, up 0.3% from last year and up 9.0% 
from February 2017. Cumulative 2017 butter production through March 
totals 514.4 million pounds, 0.1% above the same period for 2016. 
March 2017 butter production in the Atlantic region totaled 20.7 
million pounds, up 8.1% from last year and up 1.1% from February 2017.

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

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

March	 	      3.3             - 55

TOTAL, JAN - MAR     11.5             - 48
 1 Canada             5.0             +163
 2 Mexico             2.0             - 88
 3 Saudi Arabia       1.0             - 31
 4 South Korea        0.9             +128
 5 UAE                0.4             +173

1100CT Jessica.Mueller@ams.usda.gov 608.422.8589
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