MD_DA410 Butter - Eastern U.S. Report 26 - Released on June 24, 2020 Butter production, in the East, parallels the previous week’s levels. While cream offers to manufacturers in the regions have increased this week, softer demand from both food service and retail, along with the cream price, pressures some butter makers to sidestep surplus cream purchases, limiting the volume of butter churned. This week, multiples were as high as 1.52 before dropping as low as 1.33 in the East. The supply of bulk stocks, as they relate to plant micro-fixing, in the filling of print butter needs, has been instrumental for butter makers in the region over the past few weeks. With the recent news of COVID-19 spikes, uncertainty in the market continues, even as staged food service openings occur. Anecdotal comments suggest bulk stocks are sufficient for the near-term, but questions are arising around yearend needs. Furthermore, suppliers’ abilities to meet future demand poses some concern for large retail butter accounts, as sources reveal that requests are being made for surety of supply for Q4. The regional bulk price for domestic sales adjusted up this week, 3 to 8 cents over the market of the CME Group, with various time frames and averages used. Export demand is sluggish. The National Dairy Product Sales Report shows May prices for butter increased 4 cents per pound from April. In general, the current market is steady, but prices have fluctuated $1.80 - $1.85 over the past week. Prices for: Eastern U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: +0.0300 - +0.0800 Information for the period June 22 - 26, 2020, issued weekly Secondary Sourced Information: CME TRADING The CME Group's Tuesday cash butter trading closed at $1.8125, down from $1.8225 a week ago. COLD STORAGE – BUTTER SUMMARY Released June 22, 2020, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). 5/31/20 Stocks in all Warehouses (1,000 pounds) as a percent of 5/31/19 4/30/20 5/31/20 5/31/19 4/30/20 Butter Stocks 313,822 372,598 380,218 121 102 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