MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 


MADISON, WI.   March 15, 2017 (Report 11)   

Milk input levels continue to encourage the region's seasonally strong 
butter production. Producers in some areas continue to source cream, 
for production, from surplus channels in order to fulfil inventory 
projection needs. Retail business is good. Heavy print volumes are set 
to clear ahead of the approaching holiday period, with scattered 
retail feature activity in the plans. Meanwhile, kosher butter 
transactions are above producers' expectations. The market reports an 
increase in the margin, well over the previous year. Efforts to 
establish contracts by some buyers for Q3 and Q4 butter needs are to 
no avail, at this point, as some processors have backed away from 
those requests. Inventories, in general, are adequate and building for 
most near term customer needs. The market undertone is unsettled, as 
prices fluctuate. Domestic bulk butter sales differ, ranging 1 to 7 
cents over the CME Group, based on various time frames and averages 
used. Tuesday, the CME Group cash trading saw Grade AA butter prices 
close at $2.1800, up $0.0125 from a week ago closing price. According 
to the DMN National Retail Report-Dairy, for March 10-16, 2017, the 
Northeast weighted average retail price for 1-pound butter was $3.21, 
3 cents higher than the national average price, and 17 cents higher 
than last week's national average butter price. Markets in the 
Northeast region reported butter prices ranging $2.77-$4.49. In the 
Southeast, the weighted average butter price is $3.18, identical to 
the national average price. Butter prices ranged $2.50-$3.49, in 
southeastern retail markets surveyed. 

1100CT daniel.johnson@ams.usda.gov 608.422.8605
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