MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   December 9, 2015 (Report 49)   

NORTHEAST BUTTER:   

Northeast cream supplies shifted from steady to increased levels for some 
butter makers, prompting a slightly higher churning rate for the region. 
A few butter makers noted an increase in cream offerings this week. 
However, sources indicated they are comfortable with the levels of 
internal cream supplies, while careful to moderate stock buildup at 
current butter prices. In general, production schedules favor salted 
butter, as higher domestic butter prices limit unsalted trading into 
exports markets. Driven by year-end holiday butter needs, the domestic 
market currently points to strong retail interest, and active food 
service orders. This week, bulk butter prices for domestic sales are 
reported 5 to 13 over the market of the CME Group, with various time 
frames and averages used. This week, a cooperative export assistance 
program accepted requests for 176,370 pounds of butter. The CME Group 
monthly average price for Grade AA butter during November 2015 was 
$2.8779, compared to $1.9968 a year ago. According to the DMN National 
Retail Report-Dairy, during the week of December 4-10, 2015, the U.S. 
weighted average advertised price for 1 pound butter was $3.34, up 6 
cents from a year ago, and up 50 cents from the previous week. The 
Northeast average butter price was $3.53, up 31 cents from last week. 
At the CME Group Grade AA butter closed Tuesday at $2.8400, down 6 cents 
from last Tuesday. The Foreign Agricultural Service (FAS) reports October 
2015 U.S. exports of butter and milkfat totaled 2.0 million pounds, a 57% 
decrease from a year ago.

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


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

October Total        2.0            - 57

TOTAL, JAN - OCT     44.0             - 69

 1 Saudi Arabia      16.6             - 48
 2 Mexico             8.5             + 5
 3 Canada             5.5             + 2
 4 South Korea        2.9             - 13
 5 Iran               1.2             - 92


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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