MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI. June 7, 2017 (Report 23)

Northeast butter production is steady to light this week. Some butter 
makers are churning only for contracted needs. A number of 
manufacturers have shut off their churns for maintenance and also to 
source their cream in other ways. The cream demand is strengthening, 
as Class II commodities like ice cream are showing increased demand. 
Some Eastern traders communicated cream trading activity is highly 
active, as a handful of market participants just barely purchased 
enough cream. Butter interest continues to be strong as retail 
advertisements are released. Domestic butter prices in the global 
market are good and look to be moving higher. Butter inventories are 
adequate for near term contractual requirements. 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. 
This Tuesday, CME Group cash trading saw Grade AA butter prices close 
at $2.5250, an incline from the previous Tuesday's $2.3600 closing 
price. The Foreign Agricultural Service (FAS) reports April 2017 U.S. 
exports of butter and milkfat totaled 4.2 million pounds, a 36% 
increase from a year ago. The CME Group monthly average price for 
Grade AA butter during May 2017 was $2.2684, compared to $2.0554 a 
year ago. According to the DMN National Retail Report-Dairy, for June 
2-8, 2017, the Northeast weighted average retail price for 1-pound 
butter was $3.29, 2 cents lower than the national average price and 58 
cents lower that last week's Northeast butter price. Retail markets 
reported butter prices ranging $1.99-$4.49. Meanwhile, butter prices 
in the Southeast moved down 51 cents to $3.17, with prices ranging 
$3.00 $3.99. DAIRY PRODUCTS:  According to NASS, U.S. butter 
production for April 2017, totals 164.1 million pounds, down 4.1% from 
last year and down 6.8% from March 2017. Cumulative 2017 butter 
production through April totals 679 million pounds, 0.9% below the 
same period for 2016. April 2017 butter production in the Atlantic 
region totaled 18.3 million pounds, below 4.3% from last year and 
below 14.0% from March 2017. 

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

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

April                 4.2             + 36

TOTAL, JAN - APR     15.7             - 37
 1 Canada             7.0             +139
 2 Mexico             2.4             - 86
 3 South Korea        1.3             +151
 4 Saudi Arabia       1.2             - 45
 5 Peru               0.8             +845

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