MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   August 24, 2016 (Report 34)   


NORTHEAST BUTTER:

The Northeast milk supply has decreased in the recent weeks, in part 
because of seasonal factors and educational institutions. As students 
head back to school, an increasing amount of fluid milk has been going 
towards their demand and away from the production of other dairy 
products. In response, the Northeastern butter market has seen 
significant reduction in butter churning rates. However, suppliers are 
capable of producing butter and keeping up with the contractual 
demands. In response to increased fluid milk sales and low cream 
availability, butter has been tight in the market with cream multiples 
fluctuating in the mid-1.30s to the low 1.40 range. According to NASS 
Cold Storage, U.S. butter in storage on July 31, 2016 totaled 333.123 
million pounds, 31% above a year ago and 2% more than last month. 
According to the DMN National Retail Report-Dairy, for August 19-25, 
the national weighted average advertised price for 1-pound butter is 
$3.41, up $0.18 from last week, and up $.43 from a year ago. The 
Northeast regional price is $3.52, a $0.25 decrease from the previous 
week. In the Southeast butter is priced at $3.00, $0.41 lower than the 
national average. Tuesday's CME Group cash trading saw Grade AA butter 
close at $2.1075, down $0.1325 from a week ago.

1100CT Daniel.Kim@ams.usda.gov 
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