MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.   January 18, 2017 (Report 03)   
 
NORTHEAST BUTTER: 

Churning activity in the East is somewhat active as a few plants are 
still churning heavily due to surplus cream supplies. The surprise of 
the market is the strong butter prices, with the abundance of cream in 
the marketplace. Producers' stocks are adequate for contracts and the 
region's as-needed butter demand. Retailers are returning to the 
market after clearing pre-holiday inventory, but retail butter ads 
display typical post-holiday declines. Some regional buyers are not 
convinced current prices, as a reflection of the CME Groups weekly 
average, will sustain. In view of that, the CME has posted increases 
over the past 3 weeks, as the market trends higher. Buyers, as may be 
expected, are cautious of limiting purchases disproportionately, in 
the event prices continue to trend higher in an unpredictable market. 
The f.o.b. East bulk butter price is reported 5-8 cents over the 
market of the CME Group, with various time frames and averages used. 
Tuesday's CME Group cash trading saw Grade AA butter close at $2.2400, 
down $0.0600 from the previous Tuesday. The DMN National Retail 
Report-Dairy, indicates the January 13-19, 2017 national advertised 
weighted average price for 1-pound butter was $3.55, up 20 cents from 
last week, but down 2 cents from a year ago. The Northeast region's 
butter price was $3.95, up 56 cents from last week, with a price range 
of $2.99-$4.49. 

1100CT daniel.johnson@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