MD_DA431 Butter - Central U.S. Report 40 - Released on September 30, 2020 Butter production continues steadily at Midwestern plants. Cream supplies have begun to tighten in the East, but regional butter makers are still finding spots at similar multiples locally and from the West. There are some expectations from butter plant managers that cream could tighten in the near term. Retail and food service demand is reported as stronger week to week. Retail customers, in some cases, have been given notice that butter quarters may be short in the final quarter of the year. Butter contacts suggest current retail loss leader promotions may be short lived. Although bulk butter is clearly available, production capacity is limited for grocery retail orders. Butter market tones are feeling the bearish effect of cold storage increases, but contacts' Q4 expectations are mixed from sideways to bullish. Prices for: Central U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: 0.0000 - +0.0500 Information for the period September 28 - October 2, 2020, issued weekly Published by: Dairy Market News - Madison, WI ISRAEL WEBER, 608-422-8601 Email: israel.weber@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