MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   April 13, 2016 (Report 15)   


NORTHEAST BUTTER:   

There is little change from previous week's ample supply of cream in 
the region. As may be expected, in house cream volumes are more than 
adequate for manufacturing needs; therefore, most butter operations 
are bypassing surplus cream purchases. Butter outputs from regional 
balancing plants focus primarily on contractual requirements that 
address the salted variety, while unsalted runs are intermittent. 
Retail sales as noted by sources have slowed near typical seasonal 
levels. At the same time, interest from the private label sector is 
developing, based on buyers' near term demand projections. Bulk 
butter prices range 5 to 7 cents over the CME Group price, relative 
to various time frames and averages. According to the DMN National 
Retail Report-Dairy, for April 8-14, 2016 the U.S. weighted average 
advertised price for 1-pound butter is $3.05, up 24 cents from last 
year and up 9 cents from last week. The Northeast butter price is 
$2.92, a 31 cents increase from last week. The undertone of the 
market comprises uncertainty, as some market observers remain baffled 
by the strength of butter. However, after the Monday's CME $0.0500 
increase, prices retreated sharply $0.1000 on Tuesday. The Grade AA 
butter price, at the CME Group, closed Tuesday at $2.0700, up $0.0675 
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