MD_DA410   
DA  
MD DA410 BUTTER - NORTHEAST

MADISON, WI May 17, 2017 (REPORT 20)

Butter production in the Northeast is steady to strong as available 
cream clears to churns. In some manufacturing plants, salted 
production overshadows unsalted because of contractual needs and 
requests. Butter prices in the Northeast are steady to higher.  
Some market participants report strong retail orders. Retail interest 
is steady to increased for salted and steady to fair for unsalted. 
Recent news of export opportunities increasing has many individuals 
wondering what will happen to the butter price. For the past week, the 
CME Group cash trading has had daily butter sales increase in price. 
Even though there is an uptick in trading activity on the CME, some 
market participants are not convinced of the high interest for butter. 
Supplies are controllable to long, overall adequate for contracts in 
the near term. The market undertone is steady, with some signs of 
strength. Tuesday, the CME Group cash trading saw Grade AA butter 
prices close at $2.4300, up $0.3250 from last Tuesday's closing price. 
This week, a cooperative export assistance program accepted requests 
for export assistance to sell 220,462 pounds (100 metric tons) of 
butter. According to the DMN National Retail Report-Dairy, for May 12-
18, 2017, the Northeast weighted average retail price for 1-pound 
butter was $3.93, 58 cents higher than the national average price and 
42 cents higher than last week's Northeast average butter price. 
Retail markets in the region reported butter prices ranging $2.49-
$4.79. 
 

1100CT Jessica.Mueller@ams.usda.gov 608.422.8589
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