MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   February 4, 2015 (Report 05)   


NORTHEAST BUTTER:   

Northeast churns are running heavy schedules as available cream elevates 
butter output.  Manufacturers are producing both 80% and 82% at increased 
levels.  Inventories are tight as underlying demand is strong.  Buyers 
are making earlier than normal purchases in some instances, to ensure 
product availability.  The haste and level of purchasing activity is 
equated to panic buying by some market participants.  Retail orders are 
good.  Export interest remains fairly active.  The market is unsettled as 
prices continue to fluctuate.  The current bulk butter prices for 
domestic sales are 3 to 6 cents over the CME Group market, with various 
time frames and averages used.  Tuesday's CME Group cash trading saw 
Grade AA butter close at $1.7900, up $0.1875 from a week ago.  The CME 
Group monthly average price for Grade AA butter during January was 
$1.5714, compared to $1.7756 a year ago.  According to the DMN National 
Retail Report-Dairy, for January 30-February 05, the U.S. weighted 
average advertised price for 1-pound butter was $3.32, a decrease of 
$0.20 compared to a week ago.  The price in the Northeast was $3.28, a 
drop of $0.12 compared to a week ago.  The Southeast price was $2.99, an 
increase of $0.17 compared to a week ago.
DAIRY PRODUCTS:  According to NASS, U.S. butter production for December 
2014 totals 167.0 million pounds, up 3.3% from last year, and 17.4% from 
a month ago.  Butter output in the Atlantic region totals 19.4 million 
pounds, up 10.8% from last year and 33.8% from a month ago. 


1100CT Daniel.Johnson@ams.usda.gov 608.278.4156
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-
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