MD_DA410 DA MD DA410 BUTTER - NORTHEAST MADISON, WI. July 08, 2015 (Report 27) NORTHEAST BUTTER: Churning was slightly higher over the weekend with some additional cream available. However, cream supplies have tightened, edging the Northeast churning rates lower. Cream volumes to Class II processing are greater, largely due to ice cream. Butter orders are slow to develop in this post-holiday period, as buyers assess existing inventory levels prior to resuming purchasing. The current bulk butter prices for domestic sales are reported 5-7 cents over the market of the CME Group, with various time frames and averages used. Inventories are adequate for fulfilling near-term customer needs. According to the DMN National Retail Report- Dairy, for July 3-9, the U.S. weighted average advertised price for 1- pound butter is $3.04, down 47 cents from a year ago, and down 38 cents from the previous week. The Northeast average price is $2.95, a 61 cent drop from last week. In the Southeast, the butter price averaged $3.43, down 19 cents from a week ago. Tuesday?s CME Group cash trading saw Grade AA butter close at $1.9250, up $0.0075 from a week ago. The Foreign Agricultural Service (FAS) reports May 2015 U.S. exports of butter and milkfat totaled 3.5 million pounds, a 71% decline from a year ago. DAIRY PRODUCTS: According to NASS, U.S. butter production for May 2015 totals 169.5 million pounds, up 1.9% from last year and up 3.2% from a month ago. Butter output in the Atlantic region totals 16.1 million pounds, up 2.4% from last year, but down 2.9% from a month ago. 2015 U.S. Butter and Milkfat Exports (USDA-FAS) (Million Lb.) % Change From 1 Year Ago May 3.5 - 71 Total Jan. ? May 26.0 - 74 1 Saudi Arabia 9.1 - 63 2 Mexico 6.5 + 48 3 Canada 2.0 - 28 4 South Korea 1.9 - 18 5 Iran 1.2 - 83 1100CT Daniel.Johnson@ams.usda.gov 608.557.7006 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