Butter - West
USDA - Wed Dec 06, 2:59PM CST
MD_DA440  
DA 
MD DA440 BUTTER - WEST 

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

Although cream supplies are long in the West, churning is less active in some areas. A 
number of processors report having plenty of butter to meet their end of the year 
holidays' obligations. Manufacturers are doing their best to keep their inventories in 
check. Therefore, they are finding other avenues to use their cream. Butter orders for 
the remainder of the year are generally steady to weakening.  Some purchasers are putting 
more of their attention on quoted butter prices for 2018 as they have met their butter 
needs for this month. This week, western bulk butter prices range 2 cents to 6 cents 
above the market, based on the CME Group with various periods and averages used. The 
Grade AA butter price at the CME Group on Wednesday closed at $2.2250, up $.0200 from a 
week ago. The DMN National Retail Report-Dairy for the week of December 1-7 found that 
the U.S. weighted average advertised price of 1 pound butter is $3.24 up $.16 from last 
week. The U.S. weighted average price was $2.98 one year ago. In the Southwest, the 
weighted average advertised price of 1 pound butter is $3.77, with a price range of 
$2.49-$4.99. The weighted average price in the Northwest is $2.97, with a price range of 
$2.49-$3.99. The CME Group November 2017 monthly average price for Grade AA butter, 
$2.2244, is down from the October monthly average of $2.3293. One year ago the CME Group 
monthly average was $1.9899. According to the NASS Dairy Products report, U.S. butter 
production during October 2017, 417.6 million pounds, was 4.0 percent higher than October 
2016, and 6.0 percent higher than September 2017. U.S. cumulative 2017 butter production 
through October is 1.526 billion pounds, 0.4 percent lower than the same period last 
year. In the West, total October butter production was 70.8 million pounds, 1.4 percent 
higher than October 2016 and 13.9 percent higher than September 2017. 


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 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