MD_DA440 DA MD DA440 BUTTER - WEST MADISON, WI. October 11, 2017 (REPORT 41) In the West, there are enough supplies of cream to meet butter processing needs. In general, butter production is steady, but industry contacts suggest heavier output of print butter. This could impact available bulk butter production and supply in the short term. Current butter stocks are stable to slightly higher. Butter sales are fairly strong in the domestic and international markets. However, some buyers/end-users are putting off buying butter as they hope for prices to go down. Buyers for bakeries and grocery stores in some areas are taking their time to increase their preholiday orders. Processors expect demand to increase close to the holiday season. The market undertone is fairly balanced. The DMN National Retail Report-Dairy for the week of October 6-12 found that the U.S. weighted average advertised price of 1 pound butter is $3.46, down $.32 from last week. The U.S. weighted average price was $3.23 one year ago. In the Southwest, the weighted average advertised price of 1 pound butter is $3.55, with a price range of $2.50-$3.99. The weighted average price in the Northwest is 3.35, with a price range of $2.50-$3.69. This week, a cooperative export assistance program accepted requests for 220,462 pounds (100 metric tons) of butter. So far this year, the program has assisted member cooperatives who have contracts to sell 4.6 million pounds of butter (82% milkfat) in export markets. According to the NASS Dairy Products report, U.S. butter production during August 2017, 131.2 million pounds, was 6.2 percent higher than August 2016, but 3.4 percent lower than July 2017. U.S. cumulative 2017 butter production through August is 1,248.2 million pounds, 0.7 percent lower than the same period last year. In the West, total August butter production was 66.2 million pounds, 3.5 percent higher than August 2016 and 0.2 percent higher than July 2017. California August production was 38.7 million pounds, 1.2 percent higher than last year and 1.3 percent higher than last month. The Grade AA butter price at the CME Group on Wednesday closed at $2.3450, down $.0100 from a week ago. 2017 U.S. Butter and Milkfat Imports (USDA-FAS) (Imports for Consumption) 2017 Imports % Change From (Million Lb.) 1 Year Ago August Imports Total Butter, Fats, Milk (H.S. Code 0405) 8.2 + 5 Butter Quota (H.S. Code 405101000) 2.5 +272 Over Quota (H.S. Code 405102000) 3.4 - 5 AMF Quota (H.S. Code 405901020) 0.5 - 8 Over Quota (H.S. Code 405902020) 1.7 - 41 Other Milk Fat 0.1 - 40 2017 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN - AUG 53.7 - 23 1 Ireland 28.3 + 49 2 Mexico 9.4 - 54 3 New Zealand 5.4 - 65 4 France 2.7 - 8 5 Chile 2.7 + 55 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- home