MD_DA440 Butter - Western U.S. Report 28 - Released on July 10, 2019 Butter manufacturing in the Western region has returned to normal following the holiday week. Manufacturers relay that a few Class II processors remained open throughout the holiday week, keeping cream supplies from getting too sloppy. Churning is proceeding with the available cream, but some butter makers say production is lower than expected. Retail bids are steady and solid, but a few manufacturers are trying to hold back on shipments by their own volition. They would like to see a little more cushion in available butter stocks before releasing print butter. Bulk butter demand varies. Some manufacturers are seeing stronger than usual demand and anticipate this interest to grow as more confectionary customers ramp up their activities later this summer. However, bulk butter overages have eased back. A few industry contacts report lower bids are getting vetted through the industry, and, in some cases, have generated sales for older production at levels below published prices. National Retail Report Dairy ± Butter Summary Advertised Prices at Major Retail Supermarket Outlets ending during the period of 7/05/2019 to 7/11/2019 Butter 1# Weighted Average Price National This Period Last Week Last Year Conventional $3.05 $3.48 $2.89 Organic n.a. $5.49 $5.10 Prices This Period Regional (Conventional) Wtd. Ave. Low High Alaska $3.49 $3.49 $3.49 Northwest $2.90 $1.99 $3.49 Southwest $3.77 $2.88 $3.99 Prices for: Western U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: +0.0200 - +0.0750 Information for the period July 8 - 12, 2019, issued weekly Secondary Sourced Information: Dairy Products Report ± Butter Summary Released July 3, 2019, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). Butter Production ± States and United States: May 2018 and 2019 Monthly Production (1000 pounds) Percent Change from May Apr. May May Apr. Region 2018 2019 2019 2018 2019 United States 170,122 164,674 162,967 -4.2 -1.0 Atlantic 18,453 16,851 17,518 -5.1 4.0 Pennsylvania 8,602 7,323 7,969 -7.4 8.8 Central 70,767 61,891 62,650 -11.5 1.2 West 80,902 85,932 82,799 2.3 -3.6 California 50,671 54,518 51,789 2.2 -5.0 Butter Production ± Cumulative Production January - May Cumulative Production Percent Change (1000 pounds) from Report Month 2018 2019 2018 May 876,997 855,366 -2.5 CME Closing price The Grade AA butter price at the CME Group on Wednesday closed at $2.4075, compared to the weekly average price of $2.4050 from last week. 2019 U.S. Butter and Milkfat Exports (USDA-FAS) 2019 Exports % Change From (Million Lb.) 1 Year Ago May 5.2 - 41 TOTAL, JAN - MAY 25.5 - 33 Exports ± Destination Country 1 Canada 8.3 - 31 2 Mexico 3.7 - 64 3 Columbia 2.8 +1406 4 South Korea 2.6 +131 5 Saudi Arabia 2.6 + 18 2019 U.S. Butter and Milkfat Imports (USDA-FAS) (Imports for Consumption) 2019 Imports % Change From (Million Lb.) 1 Year Ago May Imports Total Butter, Fats, Milk (H.S. Code 0405) 13.2 + 28 Butter Quota (H.S. Code 405101000) 1.6 - 18 Over Quota (H.S. Code 405102000) 7.0 +166 AMF Quota (H.S. Code 405901020) 0.5 + 46 Over Quota (H.S. Code 405902020) 2.8 - 33 Other Milk Fat 1.4 - 1 2019 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN - MAY 48.4 + 27 Imports ± Country of Origin 1 Ireland 24.6 + 40 2 Mexico 9.8 + 8 3 Australia 4.5 +1622 4 India 1.8 - 61 5 France 1.7 - 22 Published by: Dairy Market News - Madison, WI MIKE BANDLI, (608)422-8592 Email: mike.bandli@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