MD_DA440

     Butter - Western U.S.

     Report 44 - Released on October 28, 2020

     In the West, there has been chatter that machine time is tight and sidetracks butter
     production. As such, some market representatives were surprised by drops in the midweek CME
     butter price. Hence, there is market uncertainty as to where prices will stabilize. While
     there are inventory drawdowns occurring, which supports price, some manufacturers note that
     pulls need to occur continuously to prevent any gyration. Production rates vary, but are
     generally higher as manufacturers look to fill seasonally increasing sales. Interest from
     retail butter accounts remain fairly active. Restaurant and foodservice outlets would
     typically be experiencing increased traffic flows at this time of year, but distributors are
     not quite sure how much to purchase for the remainder of the year. Cream for churning is
     readily available, with loads moving across regions. Current prices for bulk butter range
     from +.0200 to +.0750 over the market, based on the CME, with various time frames and
     averages used. The butter market undertone is unsettled.
     Prices for: Western U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter

     Bulk Basis Pricing  - 80% Butterfat $/LB:              +0.0200 - +0.0750


     Information for the period October 26 - 30, 2020, issued weekly

     Secondary Sourced Information:

     CME CLOSING PRICE
     The Grade AA butter price at the CME Group on Wednesday ended the day at $1.3825,compared
     to last Wednesday's close of $1.4525.

     EXPORT ASSISTANCE
     This week, a cooperative export assistance program accepted requests for 956,806 pounds
     (434 metric tons) of butter. So far this year, the program has assisted member cooperatives
     who have contracts to sell 9.401 million pounds of butter (82% milkfat) and 1.982 million
     pounds of anhydrous milkfat in export markets.

     Published by:
     Dairy Market News - Madison, WI
     DANIEL JOHNSON, 608-422-8605
     Email: daniel.johnson4@usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov