MD_DA440 Butter - Western U.S. Report 3 - Released on January 16, 2019 In the West, butter churns are full of cream as processors take advantage of cheap cream prices to seasonally build their butter inventories for use later in the year. Currently, stocks of butter are heavy and will likely get heavier in the coming months. However, processors are comfortable with their holdings. Print and bulk butter orders from retailers are surprising stronger than expected. Most bulk butter buyers are looking to satisfy their first and second quarters¶ needs. Export demand is currently stable, but sellers hope that it will respond positively to competitive domestic prices. National Retail Report Dairy ± Butter Summary Advertised Prices at Major Retail Supermarket Outlets ending during the period of 1/11/2019 to 1/17/2019 Butter 1# Weighted Average Price National This Period Last Week Last Year Organic $5.29 $5.63 n.a. Conventional $3.47 $3.67 $3.36 Prices This Period Regional (Conventional) Wtd. Ave. Low High Northwest $2.50 $2.50 $2.50 Southwest $2.50 $2.50 $2.50 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 January 14 - 18, 2019, issued weekly Secondary Sourced Information: The Grade AA butter price at the CME Group on Wednesday closed at $2.2625, compared to the weekly average price of $2.2375 from a week ago. This week, a cooperative export assistance program accepted requests for 454,152 pounds (206 metric tons) of butter. So far this year, the program has assisted member cooperatives who have contracts to sell 454,152 pounds of butter (82% milkfat) in export markets. Published by: Dairy Market News - Madison, WI FLORENCE KONE-GONZALEZ, (608)422-8594 Email: Florence.KoneGonzalez@ams.usda.gov Additional Dairy Market News Information: Dairy Market News (DMN) by Phone: (608)422-8602 DMN Website: http://www.ams.usda.gov/market-news/dairy DMN Database Portal: http://www.marketnews.usda.gov/mnp/da-home