MD_DA410
DA
MD DA410 BUTTER - Northeast  

MADISON, WI. July 19, 2017 (Report 29)

Butter sales in the East region are good as retail channels announce 
weekly ads for butter. In addition, with the high demand for domestic 
butter in global markets, butter sales have been active 
internationally and contracts continue to rise in price. Cream 
multiples are firm as there is a rising demand for cream from Class II 
and IV manufacturers. Market participants communicate Northeastern 
cream availability is mixed. A number of manufacturers are seeing 
available cream to purchase. However, a handful of market participants 
report limited cream spot load availability. Butter churns are active 
to turned off. Some manufacturers report butter production is strong. 
However, a number of butter makers have stopped production to sell the 
cream and to have it for other uses in the balancing plants. A handful 
of butter manufacturers report having large amounts of salted butter 
in stock. Unsalted butter inventories are moderate to limited 
although, dairy industry individuals communicate there is a demand for 
unsalted butter. Overall, butter stocks are manageable to building for 
near term needs. Domestic bulk butter prices are 5 to 7 cents over the 
market of the CME Group, with various time periods and averages used. 
The market tone is in good balance. Tuesday's CME Group cash trading 
saw Grade AA butter prices closed at $2.6450, up $0.0375 from the 
previous week. According to the DMN National Retail Report-Dairy, for 
July 14-20, 2017, the Northeast weighted average retail price for 1-
pound butter was $3.76, 85 cents higher than the national average 
price, and no change in price from last week's Northeast butter price. 
Retail butter markets reported prices ranging $2.47-$4.99. The 
surveyed average price in the Southeast moved to $3.11, 64 cents lower 
than last week's Southeast butter price, with prices ranging $2.49-
$3.48.

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