MD_DA410 DA MD DA410 BUTTER - NORTHEAST MADISON, WI. January 27, 2015 (Report 04) NORTHEAST BUTTER: Northeast butter production is heavier for some, as churning surpasses demand. Cream supplies were readily available over the weekend into the early part of the week. This was relatively due to the winter snow storm, which increased Class I demand and immobilized cream distributions to cream user facilities in the region. Therefore, a few butter producers were able to take advantage of reasonable multiples in a very active cream spot market. As some in the market expected, retail butter purchases dropped slightly this week. Retailers are assessing their needs, following the impact of the winter snow storm. Manufacturers are moderately clearing 82% unsalted into international outlets. Bulk butter stocks for both salted and unsalted butter are building, with reports from sources of volumes channeling into freezer programs at an elevated rate. The current bulk butter price for domestic sales are reported flat to 8 over the CME Group price, with various time frames and averages used. The market undertone in the East is uncertain as butter producers look for things to return to normal following the winter snowstorm. According to the DMN National Retail Report-Dairy, during the week of January 22-28, 2015, the U.S. weighted average advertised price for 1 pound butter was $3.20, down 12 cents from a year ago, and down 37 cents from the previous week. The weighted average butter price in the Northeast was $3.25, down 40 cents a week ago. At the CME Group, Grade AA butter closed Tuesday at $2.1900, up $0.0575 from a week ago. COLD STORAGE: According to NASS, U.S. butter in storage on December 31, 2015 totaled 152.9 million pounds, 46% above a year ago and 15% more than last month. 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