MD_DA451   
DA 
MD DA451 BUTTER HIGHLIGHTS

November 20, 2009 MADISON, WI (REPORT 46)

BUTTER HIGHLIGHTS:  The cash butter price at the CME 
continues to hold steady at $1.5250.  Churning activity 
across the country is trending lower as milk volumes 
decline and other cream uses become more competitive.  
Cream supplies are tightening to the point that cream is 
moving westward from the Central part of the country.  Some 
butter producers are anticipating that cream supplies will 
increase during the upcoming week when some Class II 
operations reduce production schedules for the holiday 
period.  Butter stocks are reported to be in balance with 
current and near term needs.  Most suppliers indicate that 
the year end holiday period is pulling heavy volumes of 
print butter.  Especially this week, retail promotions are 
prevalent in print ads with various locations featuring 1 
pound prints under $1.00 per pound.  Recent promotions and 
current activities are projected to clear heavy volumes of 
print butter.  Butter stocks are generally sufficient for 
current and yearend needs.  Traders and handlers continue 
to report international buyer interest.  Some butter 
handlers will be filling this interest before years' end 
with others anticipating to become more active in 2010.  

1200c steve Schneeberger  (608)250-3204