MD_DA410 Butter - Eastern U.S. Report 32 - Released on August 05, 2020 This week, chatter revolves around the summer fall in wholesale spot butter prices. Last week, the spot butter price saw a notable drop, $0.1225 for the week. Bearish sentiments continue this week, with spot butter prices tumbling $0.1550 on Tuesday. Amidst the limited seasonal interest for retail butter and lackluster foodservice demand, butter prices are weaker, whereas stocks are increasingly healthy. Foodservice sales have fallen 50 percent for some manufacturers and sources reason that the volume of lost foodservice sales appear too hefty to recover. Meanwhile, retail butter sales are a notch higher this week. Productionwise, churn schedules in the East butter market mirror last week’s, as milk supply levels are nearly unchanged. June 2020 year-over-year butter production, in the Atlantic region, was lower compared to June the previous year. Cream markets rebounded with a surge in demand this week, which has driven multiples up into the high 1.30s and suggests less available cream for churning. Bulk butter ranges 2 to 6 cents over the market of the CME Group, with various time frames and averages used. The market undertone is weaker. CME MONTHLY AVERAGE PRICE The CME Group July 2020 monthly average price for AA butter, $1.6925, is down from the previous month’s average of $1.8291. One year ago, the CME Group monthly average was $2.3897. Prices for: Eastern U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: +0.0200 - +0.0600 Information for the period August 3 - 7, 2020, issued weekly Secondary Sourced Information: DAIRY PRODUCTS REPORT – BUTTER SUMMARY Released August 4, 2020, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). Butter Production – States and United States: June 2019 and 2020 Monthly Production (1000 pounds) Percent Change from June May June June May Region 2019 2020 2020 2019 2020 United States 154,848 177,966 150,018 -3.1 -15.7 Atlantic 14,824 16,370 14,335 -3.3 -12.4 Butter Production – Cumulative Production January - June Cumulative Production Percent Change (1000 pounds) from Report Month 2019 2020 2019 June 1,049,166 1,122,858 7.0 CME TRADING CME Group’s Tuesday spot butter trading ended at $1.4250, down from $1.7100 a week ago. EXPORT ASSISTANCE This week, a cooperative export assistance program accepted requests for export assistance to sell 41,888 pounds (19 metric tons) of butter. 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