MD_DA440 DA MD DA440 BUTTER - WEST MADISON, WI. May 10, 2017 (REPORT 19) Western butter makers report demand is steady. Some manufacturers, predicting a slight increase in export opportunities over the next few months, are hopeful the additional business can keep inventories in check. Butter stocks are heavy and still growing. However, a few processors are seeing more prospects to sell off cream in lieu of churning. Some butter makers are slowing the churns and using the time to conduct maintenance and repairs. Butter makers are shifting more production from print to bulk. Bulk butter prices have firmed and discounted loads are less prevalent. Bulk butter pricing in the West this week is 2 cents below to 2 cents above, based on the CME Group with various time frames and averages used. The DMN National Retail Report-Dairy for the week of May 5-11 found that the U.S. weighted average advertised price of 1 pound butter is $2.85, down $.37 from last week. The U.S. weighted average price was $2.91 one year ago. In the Southwest, the weighted average advertised price of 1 pound butter is $2.69 with a price range of $2.49-$2.99. In the Northwest, the weighted average advertised price of 1 pound butter is $2.50 with a price range of $2.49-$2.50. This week, a cooperative export assistance program accepted requests for 440,525 pounds (200 metric tons) of butter. So far this year, the program has assisted member cooperatives who have contracts to sell 1.9 million pounds of butter (82% milkfat) in export markets. According to the NASS Dairy Products report, U.S. butter production during March 2017, 175.5 million pounds, was 0.3% higher than March 2016, and 9.0% higher than February 2017. U.S. cumulative 2017 butter production through March is 514.4 million pounds, 0.1% higher than the same period last year. In the West, total March butter production was 77.4 million pounds, 7.0% lower than March 2016, but 5.5% higher than February 2017. California March production was 50.7 million pounds, 8.6% lower than last year, but 4.3% higher than last month. The Grade AA butter price at the CME Group on Wednesday closed at $2.1300, up $.0100 from a week ago. 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 2017 U.S. Butter and Milkfat Imports (USDA-FAS) 2017 Imports % Change From (Million Lb.) Last Month March Imports Total Butter and Milk Fat 5.8 + 11 Butter Quota (H.S. Code 405101000) 0.6 + 22 Over Quota (H.S. Code 405102000) 2.9 - 29 AMF Quota (H.S. Code 405901020) 1.2 - 3 Over Quota (H.S. Code 405902020) 0.8 + 14 Other Milk Fat 0.4 +1141 2017 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN - MAR 18.5 - 48 1 Ireland 8.2 - 1 2 New Zealand 3.3 - 71 3 Mexico 2.5 - 67 4 Chile 1.3 - 1 5 United Kingdom 1.0 + 58 1530CT Mike.Bandli@ams.usda.gov 608.422.8592 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