MD_DA410 Butter - Eastern U.S. Report 23 - Released on June 03, 2020 Northeast butter production appears to be on track to stabilize at seasonal levels, with the declines in milk production and the bulk of available cream clearing to Class II manufacturing. As in-house cream tightens, spot loads have become too costly for churning. Multiples are noticeably higher, 1.41-1.53 this week. Butter manufacturers bank on micro- fixing bulk butter to cover steady retail and rising demand from food service. Food service sales should continue to improve with the lifting of stay at home orders and consumers return to working outside the home. Manufacturing sources report that orders are heavier than projected, but butter supplies are sufficient. A recent report released by the Northeast FMMO indicates, in the Northeast, milk used in butter dropped 3.2 percent from 2018, but increased 19.1 percent from 2014. The bulk butter price for domestic sales is reported 1-6 cents over the market of the CME Group, with various time frames and averages used. The butter market undertone is bullish. Prices for: Eastern U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: +0.0100 - +0.0600 Information for the period June 1 - 5, 2020, issued weekly Secondary Sourced Information: CME TRADING The CME Group's Tuesday cash butter trading closed at $1.7200, up from $1.5800 a week ago. CME MONTHLY AVERAGE PRICE The CME Group May 2020 monthly average price for AA butter, $1.4710, is up from the previous month’s average, $1.1999. One year ago, the CME Group monthly average was $2.3366. Published by: Dairy Market News - Madison, WI DANIEL J JOHNSON, 608-422-8501 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