MD_DA410 DA MD DA410 BUTTER - NORTHEAST MADISON, WI. February 11, 2015 (Report 06) NORTHEAST BUTTER: Butter production across the Northeast region is strong in an unsettled market. Heavy cream supplies and uneven demand lends favorably to churning at some plants. Buyers are showing some caution with butter purchases. Domestic market demand for butter is fairly light. Global interest is limited. Inventories are increasing, although there are apprehensions about building inventory in the current market. Contacts note foreign market demand for Q3 is fair to good. The current bulk butter prices for domestic sales are flat to 4 cents under the CME Group market, with various time frames and averages used. Tuesday?s CME Group cash trading saw Grade AA butter close at $1.7450, down $0.0450 from a week ago. According to the DMN National Retail Report-Dairy, for February 6,-February 12, the U.S. national weighted average advertised price for 1-pound butter was $3.03, a $0.29 decline compared to a week ago. The price in the Northeast was $3.16, $0.12 lower compared to a week ago. The Southeast price was $2.50, a decrease of $0.49 compared to a week ago. The Foreign Agricultural Service (FAS) reports that December 2014 U.S. exports of butter and milkfat totaled 8.6 million pounds, a 61% drop from a year ago. 2014 U.S. Butter and Milkfat Exports, (USDA-FAS) (Million Lb.) % Change From 1 Year Ago December Total 8.6 - 61 Total, Jan ? Dec 159.1 - 21 1 Saudi Arabia 33.9 - 20 2 Iran 18.5 - 29 3 Morocco 18.1 + 1 4 Mexico 14.1 + 100 5 Egypt 10.5 - 32 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- home