As cream availability declines… some plants are securing additional loads

As cream availability declines… some plants are securing additional loads

As cream availability declines... some plants are securing additional loads
(© Flickr Creative Commons Dennis Jarvis)

MD_DA410
DA
MD DA410 BUTTER – NORTHEAST

MADISON, WI. June 14, 2017 (Report 24)

Churning schedules in the region are mixed, as production is reliant
on manufacturers’ near-term requirements and market approaches. Some
sources implied in-house cream supplies are adequate while intake milk
volumes have not slowed. However, as cream availability declines, due
to the lower level of Class I processing as seasonal interest decline,
some plants are securing additional loads in the spot market, if
possible, as butter demand and sales strengthen. Print retail and food
service channels are active. An indication of the current market
undertone is stronger cream multiples. Hence, some market participants believe current prices will remain steady to marginally higher through
the fall. Reported bulk butter prices, for domestic sales, are 5-7
cents over the market of the CME Group, with various time frames and
averages used. Tuesday’s CME Group cash trading saw Grade AA butter
prices closed at $2.5800, up $0.0550 from the previous week. Prices
are firmer through the first part of the week, adding $0.1050 since
Friday. According to the DMN National Retail Report-Dairy, for June 9-
15, 2017, the Northeast weighted average retail price for 1-pound
butter was $3.51, 5 cents higher than the national average price and
22 cents higher than last week’s Northeast butter price. Retail butter
markets reported prices ranging $2.49-$3.99. Survey prices in the
Southeast moved to $3.45, up 28 cents, with a price range of $3.00
$3.99.

1100CT [email protected] 608.422.8605
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-news/dairy
Dairy Market News database portal:
http://www.marketnews.usda.gov/mnp/da-home

 

Source: As cream availability declines… some plants are securing additional loads in the spot market, if possible http://bit.ly/2gJQ9yM

Written by 

Related posts

Please Leave a Reply About Our Post