MD_DA440 DA MD DA440 BUTTER - WEST MADISON, WI. July 12, 2017 (REPORT 28) Western butter makers report steady to lower production levels. A number of plant operators who reduced their churning activity during the Fourth of July holiday are back to their normal production volumes. Some manufacturers are decreasing their output to take advantage of higher cream prices. Those who can afford to do so, are selling their cream to ice cream processors. Butter inventories are stable and in line with processing needs. Demand is steady at seasonal levels. Some contacts suggest that international prices moved higher this week. Bulk butter pricing in the West this week is 2 cents below to 5 cents above, based on the CME Group with various time frames and averages used. The DMN National Retail Report-Dairy for the week of July 7-13 found that the U.S. weighted average advertised price of 1 pound butter is $3.35, down $.51 from last week. The U.S. weighted average price was $3.19 one year ago. In the Southwest, the weighted average advertised price of 1 pound butter is $2.97 with a price range of $2.49-$3.99. In the Northwest, the weighted average advertised price of 1 pound butter is $2.49. According to the NASS Dairy Products report, U.S. butter production during May 2017, 163.5 million pounds, was 1.5 percent lower than May 2016, but .6 percent higher than April 2017. U.S. cumulative 2017 butter production through April is 841.0 million pounds, 1.2 percent lower than the same period last year. In the West, total May butter production was 73.8 million pounds, 6.1 percent lower than May 2016 and 2.5 percent lower than April 2017. California May production was 45.8 million pounds, 7.5 percent lower than last year and 4.6 percent lower than last month. The Grade AA butter price at the CME Group on Wednesday closed at $2.5850, down $.0600 from a week ago. 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 2017 U.S. Butter and Milkfat Imports (USDA-FAS) (Imports for Consumption) 2017 Imports % Change From (Million Lb.) Last Month May Imports Total Butter, Fats, Milk (H.S. Code 0405) 6.9 ... Butter Quota (H.S. Code 405101000) 0.4 - 29 Over Quota (H.S. Code 405102000) 4.5 + 2 AMF Quota (H.S. Code 405901020) 0.6 + 53 Over Quota (H.S. Code 405902020) 1.0 - 28 Other Milk Fat 0.4 +214 2017 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN - MAY 31.6 - 34 1 Ireland 15.5 + 42 2 Mexico 5.1 - 59 3 New Zealand 4.2 - 68 4 Chile 2.3 + 64 5 France 1.5 - 23 1530CT Mike.Bandli@ams.usda.gov 608.422.8592 Florence.KoneGonzalez@ams.usda.gov 608.422.8594 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