MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   February 10, 2016 (Report 06)   


NORTHEAST BUTTER:   

Churning schedules are seasonally strong. Some butter manufacturers are 
placing emphasis on storing adequate quantities of bulk butter. Regional 
cream is not hard to find, which translated to a weaker multiple by 
midweek, as noted by some sellers in the spot market. As retail and food 
service outlets prepare for the Easter/Passover holiday demand, butter 
feature activity at the retail level appears to be lighter than last year 
at this time. As it stands, current butter prices at the CME are trending 
weaker, while a few butter market participants anticipate prices to drift 
even lower. Bulk butter prices for most domestic transactions are 
reported flat to 8 over the CME Group price, with various time frames and 
averages used. At the CME Group, Grade AA butter closed Tuesday at 
$2.1350, up $0.0350 from a week ago, but fell $0.0650 over the past three 
sessions. According to the DMN National Retail Report-Dairy, during the 
week of February 5-11, 2016, the U.S. weighted average advertised price 
for 1 pound butter was $3.32, up 29 cents from a year ago and 40 cents 
higher than the previous week. The weighted average butter price in the 
Northeast was $3.52, up 27 cents from a week ago. 
DAIRY PRODUCTS:  According to NASS, U.S. butter production for December 
2015 totals 177.1 million pounds, up 4.3% from last year, and 17.0% from 
a month ago. Butter output in the Atlantic region totals 18.0 million 
pounds, down 7.7% from last year, but up 26.5% from a month ago.


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

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

December Total        4.2             - 51

TOTAL, JAN - DEC     51.0             - 68

 1 Saudi Arabia      16.6             - 50
 2 Mexico            11.3             - 20
 3 Canada             8.0             + 28
 4 South Korea        3.2             - 25
 5 Iran               1.2             - 94


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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