MD DA410 BUTTER - NORTHEAST
MADISON, WI. January 02, 2013 (Report 01)
The CME Group butter price remained unchanged Monday and closed at $1.4975.
Butter prices have held steady in the last 4 trading sessions in light
trading. Cream supplies are very sloppy and churns are working at capacity
levels to work through the heavy yearend holiday supplies. Some breakdowns
did occur further exacerbating the cream supply situation in the East. The
increase in butter production is adding to inventories. Some butter makers
have scheduled some domestic and/or export orders to be filled this week,
but overall butter production will quickly exceed demand. All varieties of
butter, 80%, 82%, salted and unsalted are in production to fill various
current and/or possible future needs. Domestic butter demand remains weak.
Export demand continues to be fairly good and the 30 day contract extension,
averting a Longshoremen's strike, has improved the possibility of future
export shipments. Current bulk butter prices range from 4-7 cents over the
market based on the CME Group with various time frames and averages used.