MD DA410 BUTTER - NORTHEAST
MADISON, WI. June 26, 2013 (Report 26)
The CME Group butter price declined $0.0075 Tuesday and closed at $1.4675.
Trading activity has turned light as prices have moved lower. Butter prices
have declined in 5 of the last 6 trading sessions for a net decline of
$0.0675 with only 2 loads sold during that period. Good cream demand
continues to reduce volumes going to churns and limiting butter production.
The reduced production has allowed some butter makers to marginally reduce
their inventories. Butter demand continues to be slow with product moving
primarily via contract sales. Export interest is down compared to previous
weeks' levels. Production of 82% may soon decline as some manufacturers
have nearly completed filling their export orders. Current bulk butter
prices for this week are 4-6 cents over the market on the CME Group with
various time frames and averages used. According to the National Dairy
Retail Report, retail butter ads in the Northeast totaled 1,638, 40% of the
total national ad count of 4,099, the highest of any region. The weighted
average price for a 1 lb. package of butter in the Northeast was $3.14, 27
cents more than the national weighted average price, but 22 cents less than
the previous reporting period. According to the latest NASS Cold Storage
report, butter in storage on May 31, totaled 323.2 million pounds, 13.5
million pounds more (+4%) than the prior month stocks and 61.6 million
pounds more (+24%) than May 2012 stocks. The 323.2 million pound storage
figure represents an all-time high cold storage total.