MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   August 26, 2014 (Report 34)   
 

NORTHEAST BUTTER:   

Churning rates are steady to higher, compared to last week. With softer 
milk output, some plants are carrying out maintenance activities. Plants 
continue to cash in on higher returns by sourcing cream supplies to Class 
II production; conversely, some butter makers are adding to on hand cream 
supplies as those manufacturers look to fill growing Q4 demand. Market 
participants attribute recent upticks in the CME butter prices to rumors 
and uncertainty of the availability of end-of-year butter. Others 
contradict that notion after having procured ample supplies for near term 
deliveries. The general expectation is that the butter price will retreat 
from the unexpected rise. The current bulk butter price is flat to 5 over 
the CME Group market, with various time frames and averages used. Demand 
for print butter is strong. The undertone indicates an unsettled market.
According to the DMN National Retail Report-Dairy, for August 21-27, the 
U.S. weighted average advertised price for 1 pound butter is $2.98, down 
38 cents from a year ago, and down 13 cents from the previous week. The 
Northeast average price is $3.23, up 4 cents from last week. The 
Southeast butter price averaged $2.24, down 73 cents from a week ago. 
Tuesday's CME Group cash trading saw Grade AA butter close at $2.2925, up 
$0.1325 from a week ago. However, prices have dropped $0.0775 Monday and 
Tuesday this week.  
COLD STORAGE:  According to NASS, U.S. butter in storage on July 31, 2015 
totaled 254.5 million pounds, 41% above a year ago but 1% less than last 
month.    

1100CT Daniel.Johnson@ams.usda.gov 608.557.7006
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-
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