MD DA410 BUTTER - NORTHEAST
MADISON, WI. March 27, 2013 (Report 13)
The CME Group butter price held steady Tuesday and closed at $1.6600.
Tuesday's unchanged market comes on the heels of two consecutive down
sessions that eliminated the 4 cent increase registered on March 19.
Trading has been light with only one load sold in the last 5 sessions.
Cream supplies are very heavy this holiday week with most churns operating
at/or near capacity. Domestic demand for butter is mixed with some butter
makers having few orders, while others have seen good demand from their
regular customers and from those buyers that typically build inventories
this time of year. Export demand continues to be good with a number of
manufacturers making 82%, unsalted butter to fill export orders.
Cooperatives Working Together (CWT) has accepted requests for export
assistance to sell 3.942 million pounds (1,788 metric tons) of butter and
44,092 pounds of anhydrous milk fat. The products will be delivered April
through September 2013. During 2013, CWT has assisted member cooperatives
in making export sales of butter totaling 44.849 million pounds and
anhydrous milk fat totaling 44,092 pounds. Current bulk butter prices have
declined on the upper end of the range, ahead of the holiday, and are 4-6
cents over the market on the CME Group with various time frames and averages
used. According to the latest NASS Cold Storage report, butter in storage
on February 28, totaled 240.3 million pounds, 33.2 million pounds more
(+16%) than the prior month stocks and 35.1 million pounds more (+17%) than
February 2012 stocks.