MD_DA410
DA
MD DA410 BUTTER - Northeast  

MADISON, WI. September 6, 2017 (Report 36)

Butter orders into educational institutions are active, as schools 
have opened for the year. Butter contracts into retail channels are 
strong and some manufacturers are negotiating agreements for 2018. 
Spot sales activity is steady to lower as spot prices have been 
decreasing. A number of traders communicate the spot demand is 
weakening and many market participants are willing to hold off on 
buying to see what happens to the price. This week, Eastern balancing 
plants took in steady to heavier milk volumes. The cream demand is 
fairly good. Cream availability is steady into contracts, and a little 
more available in the spot market. Butter churning is strong in some 
plants and turned off in other plants. With mixed output, inventories 
are sufficient to limited. Bulk butter price is 5 to 8 cents over the 
market of the CME Group, with various time periods and averages used. 
The market tone is steady to lower as spot prices and demand are 
weakening. The CME Group monthly average price for Grade AA butter 
during August 2017 was $2.6473, compared to $2.1776 a year ago.
Tuesday's CME Group daily cash trading saw Grade AA butter prices 
close at $2.4375, down $0.1175 from the previous week. According to 
the DMN National Retail Report-Dairy, for September 1-7, 2017, the 
Northeast weighted average retail price for 1-pound butter was $3.58, 
2 cents higher than the national price, but down 7 cents from last 
week's Northeast butter price. Retail butter markets reported prices 
ranging $2.99-$4.99 in the Northeast. The surveyed average price in 
the Southeast is $3.67, down 10 cents from last week, with prices 
ranging $3.00-$4.00. DAIRY PRODUCTS:  According to NASS, U.S. butter 
production for July 2017, totals 137.3 million pounds, up 1.6 percent 
from last year, but down 2.0 percent from June 2017. Cumulative 2017 
butter production through July 2017 totals 1.12 billion pounds, 1.4 
percent below the same period for 2016. July 2017 butter production in 
the Atlantic region totaled 13.6 million pounds, up 20.4 percent from 
last year, but down 3.3 percent from June 2017.  

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