MD_DA440  
DA                                                         
MD DA440 BUTTER - WEST                           

MADISON, WI.  November 24, 2009 (REPORT 47)

WEST BUTTER

Orders are in stores for the upcoming Thanksgiving Day holiday.  Orders 
going into this week were rated as very good with a large number of 
features noted.  Food service and restaurant sales appear to be coming 
out of the doldrums that existed this summer and into the fall.  Store 
traffic is up at a number of locations with reservations for the 
holiday above expectations.  Cash butter prices at the CME Group have 
held steady since November 9 at $1.5250.  Sales activity at the 
exchange has varied considerably in recent weeks.  This week, just on 
Monday, 14 cars were sold on offers.  More cream is available for 
churning this week as production of holiday related items and ice cream 
slows for a few days during the holiday week.  Multiples are generally 
holding steady with the butter price.  Contacts continue to discuss the 
possibility of commercial butter exports in the first quarter.   

According to NASS, Cold Storage holdings of butter at the end of 
October stand at 195.1 million pounds, down 14% or 32.9 million pounds 
from last month.  Stocks are up 31% or 45.7 million pounds from last 
year.  For most years, stocks bottom out for the calendar year during 
either November or December.  

Prices for bulk butter range from flat to 4 cents under the market, 
based on the CME with various time frames and averages used.


Donaldo.nelson@ams.usda.gov 608.250.3206 
1400C