The "Cold Storage" numbers are down 14% from last year. You have to go back several years to find butter stocks this low.
Dairy Market News' most recent international report states:
Oceania butter markets are firm with prices trending higher. Cream supplies are tight as the end of the milk production season arrives. Traders and handlers report that stocks are in very close balance to often short of projected last season needs. Especially in New Zealand, manufacturers and handlers were hoping that the end of the milk production season would have stretched out further than it did. Due to the quicker than anticipated end to the season, traders are in communication with customers trying to fulfill contract commitments.
For that matter, Dairy Market News says organic cream is moving into conventional markets because of the severe shortage of cream.
With all of the above in mind, is anyone surprised butter fell on the CME this week? Further, there appears to be no possible connection between the main trader and butter.
The Dairy Industry Advisory Committee will be holding its next meeting in early June. http://www.fsa.usda.gov/FSA/webapp?area=about&subject=landing&topic=dia
Do not expect any serious look at the CME from the DIAC.