MD_DA451   
DA 
MD DA451 BUTTER HIGHLIGHTS

January 29, 2009 MADISON, WI (REPORT 04)

BUTTER HIGHLIGHTS:  

The CME cash butter price continued to steadily decline for most 
of the week and closed the week at $1.3300.  The 13 3/4 cent 
decline this week, coupled with the 5 3/4 cent decline last 
week, contrasts with the 18 cent increase two weeks ago.  
Churning activity across the country remains seasonally active 
as available cream offerings are often keeping butter operations 
at desired levels.  As the cash price declines, buyer interest 
has slowed.  In many instances, buyers are procuring for very 
short term needs with longer term purchases being put on hold at 
this time.  Buyers are waiting until the current trend 
stabilizes.  Butter stocks are readily available and currently 
are entering inventory programs at a faster pace than in recent 
weeks.  Many butter producers and handlers are OK with this, as 
many feel that butterfat and butter will be less available 
during the second half of the year.  


1200c steve Schneeberger  (608)250-3204