MD_DA451   
DA 
MD DA451 BUTTER HIGHLIGHTS

July 2, 2009 MADISON, WI (REPORT 26)

BUTTER HIGHLIGHTS:  

The cash butter price at the CME Group declined early in 
the week to the lowest level since April and closed the 
week at $1.1925.  Churning activity across the country has 
been quite active and will remain so during the upcoming 
weekend when additional cream volumes are expected to be 
available.  Many butter producers are anticipating that 
this will be the last time significant surplus cream 
offerings will be available on a spot basis as typically 
these cream offerings disappear after the holiday for the 
balance of the summer.  Butter demand is fair at best as 
most buyers hold off placing regular orders until they 
review their inventory situation following the holiday.  
During June, the DEIP program accepted bids of 54 MT of AMF 
(119,000 pounds) and 1,794 MT of butter (3.95 million 
pounds) for export with bonuses of $1050/MT on the AMF 
(47.6 cents) and $850/MT on the butter (38.5 cents).  The 
DEIP program is now closed, as the DEIP fiscal year is from 
July 2008 - June 2009, even though the program was just 
recently announced.  The trade is waiting to see if a new 
program will be announced.

1200c steve Schneeberger  (608)250-3204