MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   March 30, 2015 (Report 13)   


NORTHEAST BUTTER:   

Churns are making butter at a high rate at plants in the Northeast. 
Post-holiday demand for Class II cream has not shown significant 
increases, as brokers note the level of expected ice cream needs is 
slow to develop. Thus, surplus cream is advancing regional butter 
output. In general, the market note moderate sales over the holiday. 
Some end users are now buying ahead, to insure adequate supplies for 
later use. Current inventories are mostly filling contractual needs, 
with limited exchanges taking place in the spot market.  Based on 
typical changes in post-holiday eating patterns, foodservices needs 
will likely decrease. As such, suppliers anticipate declines in near-
term butter orders. Bulk butter prices range 5 to 7 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 25 to 31, 2016, the U.S. 
weighted average advertised price for 1-pound butter was $2.70, down 
37 cents from the previous week. The weighted average butter price in 
the Northeast was $2.99, down 24 cents from a week ago. The Grade AA 
butter price, at the CME Group, closed Tuesday $1.9500, down $0.0075 
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-home