MD_DA410

     Butter - Eastern U.S.

     Report 3 - Released on January 15, 2020

     Manufacturers' churning schedules are seasonally active, with plenty of cream available from
     local and out of area sources. Hence, cream offerings are heavy with much of the cream
     ending up in churns. While new butter obligations for Q1 and Q2 are a priority, just as
     important are the efforts of manufacturers to build bulk butter inventories for future use,
     around current butterfat prices. Light milk intakes deter churning beyond contract
     commitments at some balancing plants, as those processors favor selling surplus cream. After
     holiday butter orders are fair to good, but few price promotions at retail stores are noted.
     Bulk butter sales are 4 to 7 over the market, based on the CME Group, with various time
     frames and averages used. The butter market is unsettled.

     NATIONAL RETAIL REPORT DAIRY – BUTTER SUMMARY
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of
     01/10/2020 to 01/16/2020

     Butter 1#                       Weighted Average Price
     National                  This Period   Last Week   Last Year
     Conventional                 $3.40        $3.60       $3.47
     Organic                      $5.49        $5.99       $5.29

                                       Prices This Period
     Regional (Conventional)     Wtd. Ave.      Low         High
     Northeast                    $3.42        $2.99       $4.29
     Southeast                    $3.86        $2.99       $3.99


     Regional (Organic)          Wtd. Ave.       Low        High
     Northeast                    $5.49        $5.49       $5.49
     Prices for: Eastern U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter

     Bulk Basis Pricing  - 80% Butterfat $/LB:              +0.0400 - +0.0700


     Information for the period January 13 - 17, 2020, issued weekly

     Secondary Sourced Information:

     CME TRADING
     Tuesday’s CME Group cash trading saw Grade AA butter close at $1.9400, up $0.0600 from a
     week ago.

     COOPERATIVE WORKING TOGETHER (CWT)
     This week, a cooperative export assistance program accepted requests for export assistance
     to sell 244,713 pounds (11 metric tons) of butter.
     Published by:
     Dairy Market News - Madison, WI
     Janet Linder, 608 422 8588
     Email: Janet.Linder@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