MD_DA440  
DA                                                         
MD DA440 BUTTER - WEST                           

MADISON, WI.  February 11, 2015 (REPORT 6)
 
WEST BUTTER 
  
The butter market and pricing are retreating through midweek, 
giving back recent gains made over the past two weeks.  Buying 
interest is uneven.  Some buyers are seeking coverage, while 
others are concerned that the market is overstated.  Retail 
print orders are good ahead of the Easter/Passover needs.  Bulk 
butter demand is mostly light.  Cream supplies are available and 
leading to more churning.  Demand into export channels has 
slowed as U.S. prices increase.  Bulk butter pricing is 4.5 
cents under to 2 cents over based on the CME Group with various 
time frames and averages used.  Butter production is steady to 
higher.  Additional milk and cream is moving to butter.  Other 
butter producers are trying to balance output by not taking in 
outside cream.  Butter holdings are light to moderate.  The DMN 
National Retail Report-Dairy ads for the week of February 5, 
shows the U.S. weighted average advertised retail price for a 
one pound pack of butter at $3.03, down $.29 from last week but 
$.06 higher than a year ago.  Butter ad prices averaged $3.98 in 
the Southwest and $2.66 in the Northwest.  Butter prices at the 
CME Group on Wednesday closed at $1.7100, down $.1400 from a 
week ago. 

      2014 U.S. Butter and Milkfat Exports, (USDA-FAS)
                 (Million Lb.)     % Change From
                                   1 Year Ago
December Total       8.6             -   61

Total, Jan ? Dec   159.1             -   21
1 Saudi Arabia      33.9             -   20
2 Iran              18.5             -   29
3 Morocco           18.1             +    1
4 Mexico            14.1             +  100
5 Egypt             10.5             -   32 

1530CT butch.speth@ams.usda.gov 608.278.4152
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home