MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   January 13, 2015 (Report 2)   


NORTHEAST BUTTER:  

Northeast butter output rates are steady to somewhat higher. For most 
manufacturers, current production surpasses demand, thus surplus stocks 
are clearing to inventory. Balancing plant managers note a preference for 
buying and churning surplus cream instead of selling cream at the current 
multiples. Both salted and unsalted butter are being manufactured. The 
undertone for the butter market is steady to firm. The current bulk 
butter prices for domestic sales are reported 4-7 cents over the market 
of the CME Group, with various time frames and averages used. According 
to the DMN National Retail Report-Dairy, during the week of January 8-14, 
2015, the U.S. weighted average advertised price for 1 pound butter was 
$3.39, up 39 cents from a year ago and the previous week. The weighted 
average butter price in the Northeast was $3.43, compared to $2.99 a week 
ago. This week, a cooperative export assistance program accepted requests 
for 1.323 million pounds of butter. At the CME Group Grade AA butter 
closed Tuesday at $2.0350, down $0.0050 from last Tuesday. The Foreign 
Agricultural Service (FAS) reports November 2015 U.S. exports of butter 
and milkfat totaled 2.8 million pounds, a 56% drop from a year ago.
DAIRY PRODUCTS:  According to NASS, U.S. butter production for November 
2015 totals 150.8 million pounds, up 4.4% from last year and 2.2% from a 
month ago. Butter output in the Atlantic region totals 14.1 million 
pounds, down 3.1% from last year and 8.1% from a month ago.


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


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

November Total        2.8             - 56

TOTAL, JAN - NOV     46.8             - 69

 1 Saudi Arabia      16.6             - 49
 2 Mexico             9.1             - 10
 3 Canada             6.7             + 16
 4 South Korea        3.1             - 23
 5 Iran               1.2             - 93


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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