MD DA410 BUTTER - NORTHEAST
MADISON, WI. April 17, 2013 (Report 16)
The CME Group butter price increased $0.0100 on Tuesday and closed at
$1.7700. Butter prices have not seen a decrease in the last 12 trading
sessions and have registered a net increase of $0.1400 over that period.
Trading activity has been fairly light with only 5 loads sold in the last 7
sessions. Ample cream supplies are maintaining good volumes going to
churns, keeping butter production steady. Domestic demand for butter has
softened, which is expanding some manufacturers' inventories of bulk butter.
Production of 82% unsalted butter continues at some plants as they fill
export orders. Export demand remains strong. Cooperatives Working Together
(CWT) has accepted requests for export assistance to sell 2.222 million
pounds (1,008 metric tons) of butter. The product will be delivered April
through September 2013. During 2013, CWT has assisted member cooperatives
in making export sales of butter totaling 49.368 million pounds and
anhydrous milk fat totaling 44,092 pounds. According to the National Dairy
Retail Report, retail butter ads in the Northeast totaled 905, 26% of the
total national ad count of 3,445, second highest of any region. The
weighted average price for a 1 lb. package of butter in the Northeast was
$2.82, 7 cents more than the national weighted average price and 3 cent more
than the previous reporting period. Current bulk butter prices have been
supported by export sales and are 4-10 cents over the market on the CME
Group with various time frames and averages used.
2013 U.S. Butter Imports (USDA-FAS)
(Million Lb.) % Change From % of
1 Year Ago Yearly Quota
Mar Quota Imports 0.98 + 91.8 6.3
Jan. - Mar.
High Tier .16 + 347.3 N.A.
Quota Imports 2.53 + 52.7 16.4