MD_DA440 Butter - Western U.S. Report 38 - Released on September 18, 2019 Western butter contacts suggest sales have slowed. Manufacturers say buyers are not showing any signs of urgency to make purchases. Instead, shoppers seem willing to wait to see if market prices slip further. While market observers think end users have some of their butter needs covered for the next few months, they also expect a surge in activity for fall and winter holiday needs. The real question is when and to what extent that seasonal buying impulse moves the market. In addition, industry contacts relay milk fat prices in the U.S. remain at a premium to prices elsewhere in the world. Some processors feel that while demand has been able to support prices domestically, a few customers may seek to import more anhydrous milkfat or butter from overseas. U.S. butter stocks are readily available and growing, according to some in the industry. Ice cream production has dropped off and the opportunities to sell off cream at higher multiples are waning. Although butter makers want to control inventories, plentiful cream keeps moving to the churns. National Retail Report Dairy ± Butter Summary Advertised Prices at Major Retail Supermarket Outlets ending during the period of 9/13/2019 to 9/19/2019 Butter 1# Weighted Average Price National This Period Last Week Last Year Conventional $3.67 $3.62 $3.41 Prices This Period Regional (Conventional) Wtd. Ave. Low High Northwest $4.79 $4.79 $4.79 Southwest $3.56 $2.99 $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: 0.0000 - +0.0750 Information for the period September 16 - 20, 2019, issued weekly Secondary Sourced Information: Export Assistance This week, a cooperative export assistance program accepted requests for 79,366 pounds of anhydrous milkfat (36 metric tons). So far this year, the program has assisted member cooperatives who have contracts to sell 4.3 million pounds of butter (82% milkfat) and 189,598 pounds of anhydrous milkfat in export markets. When combined with other dairy products, the program has assisted members with sales of 818.2 million pounds of milk on a milkfat basis. CME Closing price The Grade AA butter price at the CME Group on Wednesday closed at $2.1100, compared to the weekly average price of $2.2120 from last week. 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