MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI. May 31, 2017 (Report 22)

Butter production remains active. However, some manufacturers point 
out reductions in churning. As Class II cream demand shows strength, 
those processors are seemingly comfortable, for now, clearing extra 
cream loads to their contractual customers. Cream, however, remains 
plentiful, as multiples are steady to lower. Butter inventories are 
sufficient for near term requirements. In the East, print volumes 
moving into retail outlets are steady as stores boost promotions and 
features. Transactions in the global market are fair to good as butter 
rates in some foreign indices continue to move higher. This week, a 
cooperative export assistance program accepted requests for export 
assistance to sell 703,275 pounds (319 metric tons) of butter. The 
current bulk butter prices for domestic sales are reported 5-7 cents 
over the market of the CME Group, with various time frames and 
averages used. This Tuesday, CME Group cash trading saw Grade AA 
butter prices close at $2.3600, a decline from the previous Tuesday's 
$2.3625 closing price. However, active trading at the CME saw 5 of 6 
loads exchange hands on bids, with 11 bids left unfilled, as sellers 
look to trade at higher prices. Thus, market participants note the 
potential of butter prices moving up. According to the DMN National 
Retail Report-Dairy, for May 26-June 1, 2017, the Northeast weighted 
average retail price for 1-pound butter was $3.87, 30 cents higher 
than the national average price and 52 cents higher that last week's 
Northeast butter price. Retail markets reported butter prices ranging 
$2.99-$4.99. Meanwhile, butter prices in the Southeast moved up 45 
cents to $3.68, with prices ranging $2.50-$4.00.


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