MD_DA410
DA
MD DA410 BUTTER - Northeast  

MADISON, WI. August 9, 2017 (Report 32)

Eastern manufacturers' butter orders are steady to strong from retail 
and food service channels. Retail sales are active as stores announce 
weekly butter advertisements. Contracts from international markets are 
good as prices are steady. Market participants report seeing more 
offers of available cream this week. Cream supplies continue to clear 
into Class II manufacturing. Many dairy industry individuals are 
selling cream instead of churning. Butter production is heavy in some 
balancing plants and shut down in a number of manufacturing plants. 
Butter stocks in storage are manageable to short. Bulk butter prices 
are 5 to 7 cents over the market of the CME Group, with various time 
frames and averages used. The market undertone is steady as orders 
from domestic and international markets are active and prices are 
around $2.60-$2.70. Tuesday's CME Group cash trading saw Grade AA 
butter prices closed at $2.6600, down $0.0225 from the previous week. 
According to the DMN National Retail Report-Dairy, for August 4-10, 
2017, the Northeast weighted average retail price for 1-pound butter 
was $3.91, 34 cents higher than the national average price and up 16 
cents from last week's Northeast butter price. Retail butter markets 
reported prices ranging $2.99-$4.99. The surveyed average price in the 
Southeast moved to $3.47, with prices ranging $3.00-$3.50. The CME 
Group monthly average price for Grade AA butter during July 2017 was 
$2.6195, compared to $2.2731 a year ago. DAIRY PRODUCTS:  According to 
NASS, U.S. butter production for June 2017, totals 140.6 million 
pounds, down 4.8 percent from last year and down 14.0 percent from May 
2017. Cumulative 2017 butter production through June 2017 totals 981.6 
million pounds, 1.7 percent below the same period for 2016. June 2017 
butter production in the Atlantic region totaled 14.1 million pounds, 
up 2.3 percent from last year, but down 25.6 percent from May 2017. 

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

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

June                  8.2             +257

TOTAL, JAN - JUN     28.2             -  3
1 Canada             14.0             +219
2 Mexico              3.5             - 80
3 South Korea         2.1             +234
4 Saudi Arabia        1.8             - 29
5 Peru               1.3             +614

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