MD_DA410 Butter - Eastern U.S. Report 30 - Released on July 22, 2020 Seasonally hot temperatures continue, at the expense of butter production. As summer conditions lower butterfat content, reducing the cream for processing, butter makers simultaneously see milk intakes drop. Meanwhile, the average producer butterfat test for milk in the Northeast set a June record high, with an average 3.80 percent butterfat content. Even so, pulls on available cream from active ice cream demand also hurt butter production. Some butter processors have taken the economical position of selling cream rather than making butter, while multiples are high. Retail store purchases have dipped. Without the usual summer restaurant consumption from traditional vacation spots, orders from the food service sector remain below the seasonal norm. Butter stocks are sufficient, as the spot butter price declines. Bulk butter, in the domestic market, ranges 2 to 7 cents over the market of the CME Group, with various time frames and averages used. 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 - +0.0700 Information for the period July 20 - 24, 2020, issued weekly Secondary Sourced Information: CME TRADING CME Group’s Tuesday spot butter trading ended at $1.6625, down from $1.7450 a week ago. 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