MD_DA440 Butter - Western U.S. Report 27 - Released on July 07, 2021 Cream is a bit tighter in the West this week, although cream demand is generally said to be a little lower as well due to holiday plant closures Monday. However, some butter manufacturers are running more active schedules this week following unplanned changes to production last week. Some plants that were counting on a full week of churning butter last week, but had to pause production due to the heat, report trying to make up for that down time now. Bulk inventories are stable to growing, and butter is available for spot and contract needs. Retail demand is steady, albeit seasonally lower. Food service orders are strong but are reported to have plateaued. Export demand is stable, but port congestion and related shipping delays persist. Warehouses are also reported to be congested, and some industry contacts suggest the bottom of the bulk overage range shifting downward may reflect the convergence of heavy inventories and limited cooler space. 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 July 5 - 9, 2021, issued weekly Secondary Sourced Information: CME CLOSING PRICE The Grade AA butter price at the CME Group on Wednesday closed at $1.7400, compared to the weekly average price of $1.7505 from last week. CME GROUP MONTHLY AVERAGES The CME Group June 2021 monthly average price for Grade AA butter was $1.7758 down from the May monthly average price of $1.8124. EXPORT ASSISTANCE This week, a cooperative export assistance program accepted requests for export assistance to sell 55,116 pounds (25 metric tons) of butter and 231,485 pounds (105 metric tons) of anhydrous milkfat (AMF). So far this year, the program has assisted member cooperatives who have contracts to sell 11.2 million pounds of butter (82% milkfat) and 7.3 million pounds of AMF in export markets. When combined with other dairy products, the program has assisted members with sales of 872.6 million pounds of milk on a milkfat basis. DAIRY PRODUCTS REPORT – BUTTER SUMMARY Released July 2, 2021, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). Butter Production – States and United States: May 2020 and 2021 Monthly Production (1000 pounds) Percent Change from MAY APR MAY MAY APR Region 2020 2021 2021 2020 2021 United States 172,343 183,851 185,449 7.6 0.9 Atlantic 16,732 16,143 15,321 -8.4 -5.1 Central 63,258 70,011 70,391 11.3 0.5 West 92,353 97,697 99,737 8.0 2.1 California 54,549 59,185 61,211 12.2 3.4 Butter Production – Cumulative Production January - May Cumulative Production Percent Change (1000 pounds) from Report Month 2020 2021 2020 MAY 999,266 964,154 -3.5 U.S. BUTTER AND MILKFAT EXPORTS (USDA-FAS) 2021 Exports % Change From (Million Lb.) 1 Year Ago TOTAL, MAY 12.2 +149 TOTAL, JAN-MAY 49.8 +143 Exports – Destination Country 1 Canada 13.4 + 97 2 Bahrain 5.7 +1515 3 Saudi Arabia 5.7 +160 4 Egypt 5.5 +329,401 5 Denmark 3.1 +2909 U.S. BUTTER AND MILKFAT IMPORTS (USDA-FAS) (Imports for Consumption) 2021 Imports % Change From (Million Lb.) 1 Year Ago May Imports Total Butter, Fats, Milk (H.S. Code 0405) 10.8 - 24 Butter Quota (H.S. Code 405101000) 1.8 - 3 Over Quota (H.S. Code 405102000) 6.4 - 33 AMF Quota (H.S. Code 405901020) 0.4 + 22 Over Quota (H.S. Code 405902020) 0.3 - 81 Other Milk Fat 2.0 + 53 2021 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN-MAY 44.4 - 15 Imports – Country of Origin 1 Ireland 27.9 + 9 2 India 6.2 - 21 3 New Zealand 4.2 +137 4 France 1.7 - 18 5 United Kingdom 1.4 + 49 Published by: Dairy Market News - Madison, WI CHELSEA ROCHELLE, 608-422-8594 Email: Chelsea.Rochelle@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