MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   February 3, 2016 (Report 04)   


NORTHEAST BUTTER:   

Cream supplies are readily available and support the region's steady to 
higher butter production. Butter manufacturers, this week, who endeavored 
to build inventory for committed accounts, saw concurrent interest grow 
from buyers who expected higher future pricing. This raised the level of 
demand for existing butter stocks, however, buyers in some instances were 
unable to secure product. Conversely, additional reports suggest existing 
stocks of key butter producers are sufficient to satisfy current and the 
majority of future commitments. The fluctuations of the CME Group butter 
price echo the opposing market dynamics, and contribute to an unsettled 
market undertone, as butter prices rise and fall. Bulk butter prices for 
most domestic sales in the region are reported flat to 8 over the CME 
Group price, with various time frames and averages used. According to the 
DMN National Retail Report-Dairy, during the week of January 29-February 
4, 2016, the U.S. weighted average advertised price for 1 pound butter 
was $2.92, down 40 cents from a year ago, and down 28 cents from the 
previous week. The weighted average butter price in the Northeast was 
$3.42, up 17 cents from a week ago. The CME Group monthly average price 
for Grade AA butter during January was $2.1214, compared to $1.5714 a 
year ago. At the CME Group, Grade AA butter closed Tuesday at $2.1000, 
down $0.0900 from 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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