MD_DA410
DA
MD DA410 BUTTER - Northeast  

MADISON, WI. July 26, 2017 (Report 30)

The demand for Northeastern butter is moderate to good as orders from 
domestic and international end users have been active. Sales are 
stable in retail channels as advertisements promote higher priced 
butter. Cream multiples are steady and Class II manufacturers are 
diverting cream into ice cream manufacturing. In addition, a number of 
Class IV manufacturers are clearing cream into balancing for butter 
production and for other uses. Eastern churns are operating on full to 
unfilled schedules. A handful of butter makers are trading their cream 
instead of churning. Butter inventories are balanced to building, in 
all, supplies are adequate for contractual requests. Bulk butter 
prices are 5 to 7 cents over the market of the CME Group, with various 
time frames and averages used. The market undertone is generally 
stable as butter prices are appearing around the $2.60 mark. Tuesday's 
CME Group cash trading saw Grade AA butter prices closed at $2.5900, 
down $0.0550 from the previous week. According to the DMN National 
Retail Report-Dairy, for July 21-27, 2017, the Northeast weighted 
average retail price for 1-pound butter was $3.38, 16 cents higher 
than the national average price, but down 38 cents from last week's 
Northeast butter price. Retail butter markets reported prices ranging 
$2.47-$4.59. There are no weighted average retail prices for the 
Southeast region this week. COLD STORAGE: The NASS Cold Storage report 
noted U.S. butter stocks as of June 30, 2017 were 310.1 million 
pounds, down 5 percent from last year, and down 1 percent from last 
month. Bulk stocks in all warehouses were 328.1 million pounds last 
year at this time.

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