MD_DA410
DA	
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   January 20, 2015 (Report 3)   


NORTHEAST BUTTER:  

Butter production is fairly steady with the previous week's output 
levels, although cream offerings are lighter. Production runs are based 
largely upon the premise of replenishing butter stocks, as manufacturers 
consider sales beyond existing orders. Cream multiples in the region have 
increased slightly, but not enough to encourage heavier trading in the 
spot market. 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. Last week, butter left some puzzled as to the 
late in the week strength, which one source attributed to butter market 
psychology outpacing butter market fundamentals. However, upon the CME 
Groups' re-opening on Tuesday following Monday's holiday break, the 
butter price retreated sharply, $0.1175, with a closing price of $2.1325. 
That is, $0.0975 above last Tuesday's close. The market undertone is 
unsettled. According to the DMN National Retail Report-Dairy, during the 
week of January 15-21, 2015, the U.S. weighted average advertised price 
for 1 pound butter was $3.57, up 57 cents from a year ago and up 18 cents 
from the previous week. The weighted average butter price in the 
Northeast was $3.65, compared to $3.43 a week ago. 

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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