MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   February 24, 2016 (Report 08)   


NORTHEAST BUTTER:   

Plenty of cream in the Northeast continues to generate seasonally 
active butter production from most churning operations. Butter plant 
maintenance activity and a pull back from ice cream manufacturing, 
due to vegan ice cream developments, are increasing the region's 
available cream. As for spot cream activity, multiples appear to have 
weakened marginally. Demand in the bulk butter market is steady to 
increasing, while the domestic price for bulk butter is reported 5 to 
8 cents over the CME Group price, with various time frames and 
averages used. Some manufacturers are adding to existing inventory 
levels. Interest based on sales to food service and retail are steady 
to good, and tied to upcoming seasonal holidays. Retail feature 
activity is below last week level. According to the DMN National 
Retail Report-Dairy, during the week of February 19-25, 2016, the 
U.S. weighted average advertised price for 1 pound butter was $3.44, 
up 26 cents from a year ago and up 15 cents from the previous week. 
The weighted average butter price in the Northeast was $3.54, down 21 
cents from a week ago. The Grade AA butter price, at the CME Group, 
closed Tuesday $2.0850, up $0.0425 from a week ago.  
COLD STORAGE:  According to NASS, U.S. butter in storage on January 
31, 2016 totaled 196.1 million pounds, 32% above a year ago and 26% 
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