MD_DA410

     Butter - Eastern U.S.

     Report 7 - Released on February 12, 2020

     With preparation for holiday pulls on butter supplies in mind, butter plants in the Eastern
     market appear inclined to maintain the steady production rates seen in recent weeks. The
     cream availability level helps, as additional loads continue to be rather easy to come by
     for regional manufacturing operations. As manufacturers' butter stocks grow toward levels
     that are projected to meet the near-term demand, there is some uncertainty that demand may
     not satisfy those sales projections. Hence, a few  market participants in the butter supply
     chain are curbing inventory buildup, while gaining a clearer picture of, and foothold on the
     current butter environment. Currently, the GDT global butter price is above those in the
     U.S. domestic wholesale bulk butter market. With that said, the demand for bulk butter in
     the U.S. market is good. The latest National Dairy Product Sales Report (NDPSR) revealed
     wholesale bulk demand increased above 47 percent, compared to the previous week. The markup
     for bulk butter in the Eastern spot market ranges 4-7 cents over, based on the CME, with
     various time frames and averages. The market undertone is uncertain.

     NATIONAL RETAIL REPORT DAIRY – BUTTER SUMMARY
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of
     02/07/2020 to 02/13/2020

     Butter 1#                       Weighted Average Price
     National                  This Period   Last Week   Last Year
     Conventional                 $3.44        $3.69       $3.58
     Organic                       n.a.        $5.49       $5.18

                                       Prices This Period
     Regional (Conventional)     Wtd. Ave.      Low         High
     Northeast                    $3.32        $1.99       $4.49
     Southeast                    $3.83        $3.00       $3.99

     Regional (Organic)          Wtd. Ave.       Low        High
     Northeast                     n.a.         n.a.        n.a.
     Southeast                     n.a.         n.a         n.a.

     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 February 10 - 14, 2020, issued weekly

     Secondary Sourced Information:

     CME TRADING
     Tuesday’s CME Group cash trading saw Grade AA butter close at $1.8150, down from $1.8800 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