MD DA410 BUTTER - NORTHEAST
MADISON, WI. December 26, 2012 (Report 52)
The CME Group butter price dropped $0.0400 on Monday and closed at $1.4975.
Butter prices declined in each of the trading sessions leading up to
Christmas and tallied a net loss of $0.0725 with 5 loads transacted. Cream
supplies are heavy and nearly all churns are working at/or near capacity in
order to handle the increased cream volumes. The increased butter
production will invariably add to inventories, but some butter makers have
scheduled some domestic and/or export orders to fill this week to limit
inventory expansion. All varieties of butter, 80%, 82%, salted and unsalted
are in production to fill various current and/or possible future needs.
Domestic butter demand has substantially weakened now that holiday orders
have been filled. Export demand continues to be fairly good, but a looming
Longshoremen's strike could close Eastern and Gulf coast ports and delay
shipments and/or possible sales. Current bulk butter prices range from 4-7
cents over the market based on the CME Group with various time frames and
averages used. According to the latest NASS Cold Storage report, butter in
storage on November 30, totaled 127.1 million pounds, 18.0 million pounds
less (-12%) than the prior month stocks, but 33.6 million pounds more (+36%)
than November 2011 stocks.