MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   November 2, 2016 (Report 43)   
 

NORTHEAST BUTTER:   

Butter production is very active for some operations, following 
recent increases in CME butter prices. Retail sales do occur, at 
times, based on margins over the CME price. Hence, retailers who 
appear motivated by pertinent jumps in the CME butter price are 
asking that loads be added to initial holiday butter orders. 
Processors are looking to supplement in-house cream supplies 
with spot market purchases to facilitate meeting the stronger 
holiday demand. However, as cream availability tightens, with 
reports of supplies clearing to foreign markets, bulk butter 
stocks are helping to meet orders through active micro fixing 
processes. This week, reported bulk butter transactions included 
prices ranging 5 to 8 over the CME Group with various time 
frames and averages used. The butter supply in the region for 
near term needs is adequate. The market is unsettled. Tuesday's 
CME Group cash trading saw Grade AA butter close at $1.8800, up 
$0.0500 from the previous week. According to the DMN National 
Retail Report-Dairy, for October 28-November 3, 2016, the 
national advertised weighted average price for 1-pound butter 
was $3.31, up 33 cents from last week, but down 20 cents from a 
year ago. The Northeast regional price was $3.02, 35 cents less 
than the previous week's price. In the Southeast, the butter 
price averages $3.44, an increase of 30 cents over the previous 
week's average price. 

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