MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   July 20, 2015 (Report 29)   

NORTHEAST BUTTER:   

In an unpredictable butter market, with the tightening of supplies, 
cream remains adequate for most butter churning needs. Industry 
sources are seeing a decline in external cream intakes at some plants. 
While comfortable with maintaining working level inventories, those 
manufacturers have moved away from intake levels of previous weeks. 
Concurrently, some churns in the region are producing heavily due to 
bulk sales through last week that considerably reduced stocks. As 
such, depending on manufacturing objectives, butter making this week 
is moderate to active. Sales overall are steady with buyers making 
regular inquiries. Small scale micro fixing is taking place at some 
plants, but will likely increase moving into next month. Spot trades 
of bulk butter are limited this week, as butter makers manage existing 
stocks around expected future needs. The Northeast cash price for bulk 
butter ranges 5 to 8 over the market, based on the CME Group, with 
various time frames and averages used. The butter market conveys a 
firm undertone, as prices fluctuate. According to the DMN National 
Retail Report-Dairy, for July 15-22, this week's national weighted 
average advertised price for 1-pound butter is $3.05, down 14 cents 
from last week and down 21 cents from last year. The Northeast 
regional price is $3.31 down 11 cents from the previous week. In the 
Southeast, 1-pound butter is priced at $3.28, down 14 cents compared 
to last week's butter price. Tuesday's CME Group cash trading saw 
Grade AA butter close at $2.2950, up $0.0450 from a week ago. The 
Foreign Agricultural Service (FAS) reports June 2016 U.S. imports of 
butter totaled 1.2 million pounds, an increase of 57.6% from a year 
ago, while 8.1% of the yearly quota.

       
       2016 U.S. Butter Imports (USDA-FAS)
                 2016 Imports      % Change From      % of
                 (Million Lb.)       1 Year Ago       Yearly Quota


June Quota    		  1.2          +  57.6           8.1

TOTAL, JAN - JUNE
   High Tier      	 16.8          + 200.1           ...
   Quota          	  7.2          -  32.2          46.6


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