MD DA410 BUTTER - NORTHEAST
MADISON, WI. April 24, 2013 (Report 17)
The CME Group butter price fell $0.0350 on Tuesday and closed at $1.7350.
Butter prices declined in each of the last two sessions, registering a net
total loss of $0.0525. Monday's price decline was the first decline on the
butter market since March 28. Cream supplies are more plentiful as milk
production is increasing with the oncoming spring flush. Butter production
has increased as manufacturers deal with the expanding volumes of cream.
Domestic demand for butter has turned very sluggish, causing most
manufacturers to expand inventories. Some butter manufacturers continue to
make 82% unsalted butter to fill their export orders. Export interest
continues to be strong. Current bulk butter prices continue to be supported
by export sales and are 4-10 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 March 31, totaled 254.8 million pounds,
16.5 million pounds more (+7%) than the prior month stocks and 46.5 million
pounds more (+22%) than March 2012 stocks.