MD DA410 BUTTER - NORTHEAST
MADISON, WI. December 05, 2012 (Report 49)
The CME Group butter price declined $0.0100 Tuesday and closed at $1.5800.
Butter prices have declined in each of the last 12 trading sessions,
totaling a net decline of $0.3100. Butter production has slowed as most
holiday orders are nearly filled. The price declines on the butter market
have lessened manufacturers' fears of expanding butter inventories for the
short term. Overall, butter inventories are level to slightly increasing.
The lower butter price has sparked export demand, resulting in increased
production of unsalted, 80% butter at some plants. The Kansas City
Commodity Office announced this week, the award of solicitation AG-DPRO-S-
13-0034, for 533,520 pounds of salted print butter for domestic food
distribution programs. The price range for the award is $1.9568-$1.9812.
Cooperatives Working Together (CWT) has accepted requests for export
assistance to sell 1.058 million pounds (480 metric tons) of butter. The
product will be delivered December 2012 through February 2013. During 2012,
CWT has assisted member cooperatives in making export sales of butter
totaling 70.5 million pounds and anhydrous milk fat totaling 127,868 pounds.
According to NASS, cumulative 2012 butter production through October was
3.4% above cumulative year production for the same period for 2011.
October's monthly U.S. butter production totaled 145.7 million pounds, up
6.8% from September, but unchanged compared to October 2011. Atlantic region
butter production in October totaled 11.3 million pounds, up 26.5% from
September and 4.1% more than October 2011. Current bulk butter prices range
from 4-8 cents over the market based on the CME Group with various time
frames and averages used.