MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   October 07, 2015 (Report 40)   


NORTHEAST BUTTER:   

Butter production in the Northeast is fairly steady. Inventory volumes 
are mixed, due to levels of available cream. Market participants are 
somewhat apprehensive of the high butter price, while unclear to the 
triggering factors. Sources have noted that the price frenzy may result 
from reports of future butter demand, as some food service operations 
change menus. Consequently, uncertainty is prevalent as buyers hope to 
pinpoint plans for end-of-year purchasing. Demand remains good for both 
print and bulk butter. However, sources also note multiple transactions 
are necessary to get needed bulk product in some instances. The current 
bulk butter prices for domestic sales are reported 4-6 cents over the 
market of the CME Group, with various time frames and averages used. The 
market undertone is unsettled. According to the DMN National Retail 
Report-Dairy, for October 2-8, the U.S. weighted average advertised price 
for 1 pound butter is $3.32, down 36 cents from a year ago, but up 8 
cents from the previous week. The Northeast average butter price is 
$3.51, up 19 cents from last week. The Southeast price averaged $3.09 
down 19 cents from a week ago. Tuesday?s CME butter price steadied its 
free-fall from the recent record high. Grade AA butter price closed at 
$2.3500, down $0.4000 from a week ago. During that period, 30 loads 
changed hands. The CME Group monthly average price for Grade AA butter 
during September 2015 was $2.6690, compared to $2.9740 a year ago.
The Foreign Agricultural Service (FAS) reports August 2015 U.S. exports 
of butter and milkfat totaled 5.3 million pounds, a 34% decline from a 
year ago. 
DAIRY PRODUCTS:  According to NASS, U.S. butter production for August 
2015 totals 128.6 million pounds, down 1.2% from a year ago and down 3.5% 
from a month ago.  Butter output in the Atlantic region totals 9.3 
million pounds, up 27.9% from a year ago, but down 18.9% from the 
previous month.

2015 U.S. Butter and Milkfat Exports (USDA-FAS)


                 2015 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

August Total           5.3            - 34

TOTAL, JAN?AUGUST     40.3            - 70

 1 Saudi Arabia       16.5            - 46
 2 Mexico              7.6            + 21 
 3 Canada              4.4            - 6
 4 South Korea         2.7            - 10
 5 Iran                1.2            - 91


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-
home