MD_DA410 Butter - Eastern U.S. Report 43 - Released on October 21, 2020 Butter production in the East region is steady on fairly moderate churning. Limitations on milk intakes, caused by Class I pulls, and uninspiring cream offers in the spot cream market drive output levels. Manufacturers are reluctantly turning away orders, as they lean heavily on micro-fixing butter to fulfill existing sales as interest appears to approach full swing from retail. Uncertainty is at the forefront of the butter supply chain, as some sources suggest that excessive consumer buying could reemerge, following spikes in COVID-19 throughout the U.S. Retail butter ads are mixed in areas of the region, with the Northeast seeing a uptick in ads, but the Southeast noted a slight decline. Meanwhile, a recent market report points out that September same-store sales and traffic were the best since February, prior to the pandemic. Bulk butter prices for the region are reported 2-7 cents over the CME Group, with various time frames and averages used. Wholesale prices primarily display seasonal strength. 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 October 19 - 23, 2020, issued weekly Secondary Sourced Information: CME TRADING CME Group’s Tuesday spot butter trading ended the day at $1.4975 up from the $1.4750 close 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