MD_DA440  
DA 
MD DA440 BUTTER - WEST 

MADISON, WI.  September 13, 2017 (REPORT 37)

Although ice cream processors continue to pull a good volume of cream, cream 
continues to be available for western butter churning. Butter production is 
steady ahead of the fall butter season. Supplies vary from comfortable to 
long. Demand in the domestic market continues to be stronger. However, some 
buyers are taking the wait-and-see approach as they are hoping for prices to 
further decrease. Others are looking to sign their 2018 Q1 contracts. Bulk 
butter prices for this week are stable, running from flat to 6 cents over 
the market. The DMN National Retail Report-Dairy for the week of September 8-14 
found that the U.S. weighted average advertised price of 1 pound butter is $3.49, 
down $.07 from last week. The U.S. weighted average price was $3.29 one year ago. 
In the Southwest, the weighted average advertised price of 1 pound butter is $3.49, 
with a price range of $2.99-$3.99. There were no advertised ads for butter in the 
Northwest. The Grade AA butter price at the CME Group on Wednesday closed at 
$2.4175, down $.0225 from a week ago.

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

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

July                  5.2             + 86

TOTAL, JAN - JUL     33.4             +  5
 1 Canada            15.4             +186
 2 Mexico             4.4             - 75
 3 South Korea        2.5             +193
 4 Saudi Arabia       2.3             - 19
 5 Peru               1.9             +934

2017 U.S. Butter and Milkfat Imports (USDA-FAS)
(Imports for Consumption)

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

July Imports 
  Total Butter, Fats, Milk (H.S. Code 0405)     7.7             + 30
  Butter
   Quota (H.S. Code 405101000)                  2.3             +266
   Over Quota (H.S. Code 405102000)             3.7             + 27
  AMF
   Quota (H.S. Code 405901020)                  0.4             + 24
   Over Quota (H.S. Code 405902020)             1.2             - 35
   Other Milk Fat                               0.1             - 40

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

TOTAL, JAN - JUL                               45.5             - 27
 1 Ireland                                     23.6             + 40
 2 Mexico                                       7.8             - 55
 3 New Zealand                                  5.0             - 65
 4 Chile                                        2.7             + 66
 5 France                                       2.3             -  3

1530CT 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-
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