MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   November 18, 2015 (Report 46)   


NORTHEAST BUTTER:   

Butter makers in some channels have slowed production, as cream supplies 
grow tight with heightened Class II usage. There is unwillingness by some 
processors to churn butter at the current multiples. Current multiples 
would generate higher priced butter inventories ahead of expected butter 
market price declines. To minimize stock levels above current orders, 
some manufacturers are sourcing cream loads to Class II cream based 
operations, rather than churn. A few market participants indicate pre-
Thanksgiving holiday butter orders are heavier than expected, as active 
retail promotions and features continue to move product. The market 
undertone is unsettled. According to the DMN National Retail Report-
Dairy, during the week of November 13-19, 2015, the U.S. weighted average 
advertised price for 1 pound butter was $2.85, down 78 cents from a year 
ago and down 23 cents from the previous week. The Northeast average 
butter price was $3.12, up 28 cents from last week. The current bulk 
butter price for domestic sales are reported flat to 7 over the market of 
the CME Group, with various time frames and averages used. Offering for a 
few customers are being discounted below the CME price average. At the 
CME, Grade AA butter closed Tuesday at $2.8850, unchanged from last 
Tuesday. 

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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