MD_DA451   
DA 
MD DA451 BUTTER HIGHLIGHTS

November 6, 2009 MADISON, WI (REPORT 44)

BUTTER HIGHLIGHTS:  The cash butter price at the CME 
continues to climb and attain new record highs for the 
year.  On Friday, cash trading closed at $1.5000, $0.0900 
higher than last Friday, but $0.1350 lower than last year 
at this time.  Churning activity across the country 
continues to be dependent on cream availability.  Class II 
cream based holiday item production is strong, thus 
absorbing a significant portion of available cream.  Butter 
producers and handlers state that demand is strong for 
butter, thus they are often looking for additional cream 
volumes.  Current churning schedules are often not keeping 
up with demand, thus handlers are reaching further into 
inventories.  Overall butter demand is good.  International 
buyer interest is reported with some domestic producers 
committing to these inquiries.  Retailers are preparing for 
the upcoming holiday period and placing good orders.  
Retailers across the country are already running print 
features which are anticipated to clear good volumes of 
print butter.  Some features range from a free pound of 
butter with accompanying purchases to $0.9900 per pound 
prints.  Food service orders remain lighter than previous 
years, although many food service buyers are optimistic 
that traffic flow through their operations will improve as 
the holiday season approaches.

1200c steve Schneeberger  (608)250-3204