MD_DA440

     Butter - Western U.S.

     Report 14 - Released on April 01, 2020

     Western butter makers say offers for cream are abundant, but simply put, they cannot take on
     more risk. Churning is active, and producers are making more butter than can be sold in the
     near term. As a result, butter stocks are growing. Demand from food service is virtually
     non-existent, and while retail demand is higher than usual, it is slowing slightly as
     consumers settle into shelter at home scenarios. Butter market participants are hoping for
     added demand for cream and or butter to appear and clean up some of the excess supplies.
     Pricing for bulk butter has become challenging. A price set one day could lose a sizable
     portion of its value the next trading day. As a result, butter contacts say some of pricing
     for cream and butter orders have shifted to a day of shipment basis. Some manufacturers have
     held bulk butter overages steady, but the CME basis has eroded considerably.

     NATIONAL RETAIL REPORT DAIRY – BUTTER SUMMARY
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of
     03/27/2020 to 04/02/2020

     Butter 1#                       Weighted Average Price
     National                  This Period   Last Week   Last Year
     Conventional                 $3.09        $3.03       $3.34
     Organic                      $5.29        $5.70       $5.37

                                       Prices This Period
     Regional (Conventional)     Wtd. Ave.      Low         High
     Alaska                       $2.82        $2.50       $2.99
     Northwest                    $2.99        $2.99       $2.99
     Southwest                    $3.09        $2.99       $3.50


     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 March 30 -  April 3, 2020, issued weekly

     Secondary Sourced Information:


     CME CLOSING PRICE
     The Grade AA butter price at the CME Group on Wednesday closed at $1.3100, compared to the
     weekly average price of $1.6360 from last week.




     Published by:
     Dairy Market News - Madison, WI
     MIKE BANDLI, (608)422-8592
     Email: mike.bandli@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