MD_DA410 DA MD DA410 BUTTER - Northeast MADISON, WI. July 12, 2017 (Report 28) Northeastern butter market trading activities are moderate this week as domestic and global channels continue to have steady orders. Cream multiples shifted slightly lower on the bottom of the range as Eastern cream availability is mixed. Some manufacturers are seeing available cream to purchase. However, a number of market participants communicated that there is limited supply of cream. Butter production is active to quiet. A handful of manufacturers are clearing heavy amounts of cream to churns. On the other hand, some butter makers have turned off their churns to sell their cream to various manufacturing plants and end users. Butter stocks are adequate for near term needs. The demand is balanced and bulk butter prices are 5-7 cents over the market of the CME Group, with various time frames and averages used. The market undertone is stable. Monday's CME Group cash trading saw Grade AA butter prices closed at $2.6150, down $0.0300 from the previous week. According to the DMN National Retail Report-Dairy, for July 7-13, 2017, the Northeast weighted average retail price for 1- pound butter was $3.76, 41 cents higher than the national average price, but 8 cents lower than last week's Northeast butter price. Retail butter markets reported prices ranging $2.99-$4.69. The surveyed average price in the Southeast moved to $3.75, 10 cents lower than last week's Southeast butter price, with prices ranging $2.99- $3.99. DAIRY PRODUCTS: According to NASS, U.S. butter production for May 2017, totals 163.5 million pounds, down 1.5 percent from last year, but up 0.6 percent from April 2017. Cumulative 2017 butter production through May 2017 totals 841.0 million pounds, 1.2 percent below the same period for 2016. May 2017 butter production in the Atlantic region totaled 18.9 million pounds, up 7.9 percent from last year and up 3.4 percent from April 2017. 2017 U.S. Butter and Milkfat Exports (USDA-FAS) 2017 Exports % Change From (Million Lb.) 1 Year Ago May 4.3 + 187 TOTAL, JAN - MAY 20.0 - 25 1 Canada 8.8 +148 2 Mexico 3.0 - 83 3 South Korea 1.7 +194 4 Saudi Arabia 1.4 - 35 5 Peru 1.2 +852 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