Buttered Slope

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From the CME Dairy Report:

• Commercial butter stocks increased slightly in July as well, expanding by 1.1 million lbs. to 264.0 million lbs., USDA says. This is the first time since 2004 that butter inventories have increased in July.

From Dairy Market News:

• BUTTER HIGHLIGHTS: The CME cash butter price trended lower
for much of the week, but gained 2 cents on Friday to close the week at
$1.1700. The current cash price is the lowest since early March and compares
to $1.6000 last year at this time and $1.3800 in 2007. The CME cash price
has not been this low, at this time of year, since 2003.


• CCC PRICE SUPPORT PURCHASES (FSA): During the week of
August 17 – 21, CCC net purchases totaled 0 pounds of nonfortified NDM
under the dairy price support program. Cumulative NDM purchases since
October 1, 2008 total 277,236,421 pounds.

Butter imports have remained steady this year. See the information from USDA above on “high-tier” imports.

There is also a group of dairy products which come into the U.S. at low tariff rates. A license is needed and DFA holds 12:

• Butter
• Dried Skim Milk
• Other Cheese NSPF (2)
• Blue mold cheese
• American (3)
• Edam & Gouda
• Italian type (2)
• Other cheese-lowfat