Butter - Central
USDA - Wed Dec 06, 2:59PM CST
MD_DA431
DA
MD DA431 BUTTER - CENTRAL 

MADISON, WI. December 6, 2017 (Report 49)

Some butter plant managers have eased production this week. Retail and food service 
orders, in some cases, have been slower over the past two weeks. Other Central 
region producers report steady to solid interest in both salted and unsalted 
selections. Butter inventories are reportedly balanced. Cream has become readily 
available, and contacts suggest this trend will continue throughout the month. 
Cream multiples into butter churns were reported at 1.16 f.o.b. Butter contacts 
relay the market tone is slightly bearish, but some expect butter prices to remain 
safely around the $2.20 range for the near term. Bulk butter prices were unchanged, 
ranging from 3 cents under to 9 cents over the CME average. DMN National Retail 
Report-Dairy for December 1-7 noted the national weighted average advertised price 
for a 1 pound package of butter is $3.24, $0.16 above one week ago and $0.26 higher 
than one year ago. The weighted average regional prices in the Midwest and South 
Central were $2.48 and $2.58, respectively. The NASS Dairy Products report noted 
U.S. butter production during October 2017 in the Central region totaled 58.2 
million pounds, 3.2 percent higher than one year ago. Total U.S. butter production 
during October 2017 was 143.5 million pounds, 2.6 percent higher than last year. 
January through October 2017 U.S. butter production totaled 1.526 billion pounds, 
0.4 percent lower than the same period in 2016. The CME monthly average price for 
Grade AA butter during November was $2.2244, down from October's $2.3293, but up 
from $1.9899 a year ago. Wednesday at the CME Group, Grade AA butter closed at 
$2.2250, up $0.0200 from last Wednesday.

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

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

October               7.1             + 11

TOTAL, JAN - OCT     49.8             + 13
 1 Canada            21.1             + 65
 2 Mexico             6.8             - 65
 3 South Korea        3.4             +180
 4 Peru               2.8           +1,114
 5 Saudi Arabia       2.6             - 16

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

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

October Imports 
  Total Butter, Fats, Milk (H.S. Code 0405)     7.5             + 28
  Butter
   Quota (H.S. Code 405101000)                  2.2              ...
   Over Quota (H.S. Code 405102000)             3.0             +167
  AMF
   Quota (H.S. Code 405901020)                  0.7             + 81
   Over Quota (H.S. Code 405902020)             0.8             - 54
  Other Milk Fat                                0.7             + 64

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

TOTAL, JAN - OCT                               68.6             - 18
 1 Ireland                                     37.6             + 58
 2 Mexico                                      10.5             - 57
 3 New Zealand                                  6.2             - 64
 4 France                                       3.5             +  2
 5 Chile                                        2.7             + 46



1530CT israel.weber@ams.usda.gov (608)422-8601
Al.yang@ams.usda.gov
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-home