MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   March 04, 2015 (Report 9)   


NORTHEAST BUTTER:   

Butter production is primarily steady although seasonal demand from Class 
II production is pulling on regional cream supplies.  With the rise in 
cream demand and reallocations of milk supplies, due to winter weather, 
some plants are forfeiting butter processing as available cream supplies 
clear to satisfy contractual requirements.  Butter orders are increasing; 
however, some manufacturers are concerned that current market volatility 
will be an obstacle to positional demand.  With the approaching Easter 
holiday, new production is filling the majority of manufacturers' 
commitments.  The butter market's undertone is even.  The current bulk 
butter prices for domestic sales are reported 4 to 6 cents over the 
market of the CME Group, with various time frames and averages used.  
According to the DMN National Retail Report-Dairy, for February 27-March 
05, the national weighted average advertised price for 1-pound butter is 
$2.77, a decline of $0.41 from a week ago.  The price in the Northeast is 
$3.44, a $0.53 increase over last week.  The Southeast butter price is 
$2.45, a decline of $.80 compared to a week ago.  The CME Group monthly 
average price for Grade AA butter during February 2015 was $1.7293, 
compared to $1.8047 a year ago.  Tuesday's CME Group cash trading saw 
Grade AA butter close at $1.7500, up $0.1075 from a week ago.  Trading is 
active with 32 sales occurring since Monday.

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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