MD_DA431 Butter - Central U.S. Report 26 - Released on June 24, 2020 Butter makers continue to say bids on cream are too low to entice suppliers. Cream multiples, at least on the low end, are sliding some from last week, but cream is headed into heavier ice cream and cheese production currently. Butter producers are busy, nonetheless. They are actively seeking out bulk butter and say micro-fixing is the modus operandi now. Concerns are regularly reported regarding fall storage amounts. With the July 4th holiday approaching, historically cream has become more available. Some butter makers question how available cream will be and if the lack of recent churning will provide enough time to produce adequate butter stocks for the fall retail demand push, particularly as current retail orders are strong. Food service orders are still well behind last year during week 26. Regardless, the supply and demand tug-of-war is currently one-sided on the demand side. Butter market tones are hovering steadily, as prices are holding on in the low $1.80s on the CME. Prices for: Central U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: +0.0200 - +0.0700 Information for the period June 22 - 26, 2020, issued weekly Secondary Sourced Information: COLD STORAGE – BUTTER SUMMARY Released June 22, 2020, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). 5/31/20 Stocks in all Warehouses (1,000 pounds) as a percent of 5/31/19 4/30/20 5/31/20 5/31/19 4/30/20 Butter Stocks 313,822 372,598 380,218 121 102 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