MD_DA410
DA
MD DA410 BUTTER - NORTHEAST 

MADISON, WI.  May 15, 2013 (Report 20)  

NORTHEAST BUTTER        

The CME Group butter price declined $0.0225 Tuesday and closed at $1.5875.  
Butter prices have declined in 8 out of last 9 sessions with Monday's steady 
market being the only exception.  The net decline in the last 9 sessions has 
been $0.1025.  The last time the butter price increased was on April 18.  
Cream supplies remain heavy as milk production moves towards its seasonal 
peak.  Demand for cream from ice cream plants remains weak as cool spring 
weather limits ice cream sales and production.  Increased butter stocks, 
compared to a year ago, and active production schedules continue to weigh on 
the butter market.  Domestic and export demand have weakened as numerous 
buyers wait for the market to settle out from its current downward trend.  
Current production is adding to bulk butter inventories.  Current bulk 
butter prices for this week and are 4-10 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 1,475, 29% 
of the total national ad count of 5,066, the second highest of any region.  
The weighted average price for a 1 lb. package of butter in the Northeast 
was $2.76, 23 cents more than the national weighted average price, but 47 
cents less than the previous reporting period.   

2013 U.S. Butter Imports (USDA-FAS)
                  (Million Lb.)       % Change From   % of 
                                      1 Year Ago      Yearly Quota

Apr  Quota Imports   0.64             + 130.8              4.2

Jan. - Apr.  
High Tier             .23             + 204.2             N.A.
Quota Imports        3.17             +  52.5             20.6



1100C rick.whipp@ams.usda.gov