MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   August 17, 2016 (Report 33)   


NORTHEAST BUTTER:

Area milk production and available milk supply volumes are lower due 
to seasonal factors. In response, the Northeastern butter market is 
seeing a reduction in butter churning rates. Several balancing plants, 
capable of producing butter, have suspended churning schedules. With 
increased fluid sales and lower cream availability in some instances, 
a few butter makers are only able to produce the volumes needed to 
cover near term contracts. Private labels are moving well. Sources 
report the Northeast cash price for bulk butter is 5 to 8 over the 
market, based on the CME Group, and depending on various time frames 
and averages used. Market interest is active. Some regional suppliers 
are regulating sales to spot buyers on a per week basis, with the 
expectation of increasing availability in the coming month. The DMN 
National Retail Report-Dairy, for August 12-18, reported the national 
weighted average advertised price for 1-pound butter at $3.23, up 24 
cents from last week and up 12 cents from a year ago. The Northeast 
regional price is $3.77, up 45 cents from the previous week. Tuesday's 
CME Group cash trading saw Grade AA butter close at $2.2400, down 
$0.0175 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