MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   March 9, 2016 (Report 10)   


NORTHEAST BUTTER:   

Heavy cream supplies and uneven demand add to active churning at 
butter plants. Domestic demand for butter is growing as the holiday 
nears, but global interest remains limited. However, this week, a 
cooperative export assistance program accepted requests for 7.716 
million pounds of butter. Most inventories are growing, as modestly 
priced imported fat encourages surplus inventories in the domestic 
butter market. Bulk butter prices are reported 6 to 8 cents over the 
CME Group price, with various time frames and averages used. The 
market undertone is unsettled. According to the DMN National Retail 
Report-Dairy, during the week of March 4-10, 2016, the U.S. weighted 
average advertised price for 1-pound butter was $2.90, down 12 cents 
from a year ago and down 6 cents from the previous week. The weighted 
average butter price in the Northeast was $3.37, down 8 cents from a 
week ago. The CME Group monthly average price for Grade AA butter 
during February 2016 was $2.0840, compared to $1.7293 a year ago. The 
Grade AA butter price, at the CME Group, closed Tuesday $1.9700, up 
$0.0125 from a week ago.  
DAIRY PRODUCTS:  According to NASS, U.S. butter production for 
January 2016 totals 175.7 million pounds, down 2.1% from last year, 
but up 1.6% from a month ago. Butter output in the Atlantic region 
totals 20.2 million pounds, down 3.1% from last year, but up 9.3% 
from a month ago.

2016 U.S. Butter and Milkfat Exports (USDA-FAS)


                 2016 Exports      % Change From 
                 (Million Lb.)       1 Year Ago

January Total         5.7               ...

TOTAL, JAN            5.7               ... 
 1 Mexico             4.4             + 85
 2 Canada             0.5             +  4
 3 Saudi Arabia       0.2             - 57
 4 South Korea        0.1             - 65
 5 UAE                0.1             +206


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