MD_DA440 Butter - Western U.S. Report 17 - Released on April 22, 2020 In the West, butter output is very active as processors attempt the near impossible of preventing a waste of cream. However, it is becoming harder to clear all the cream available in the market even though plants are running at full capacities. The hope is that ice cream production will increase soon and absorb some of the cream. Cold storage room for butter is becoming tighter as supplies outpace demands. In addition, some buyers are taking advantage of lower butter prices and are currently purchasing for delivery later in the year. Thus, these volumes also remain in cold storage. Retail sales are good, but demands for food service accounts have been low in recent weeks. Overall, the market tone is unsettled. Prices for: Western U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: -0.0400 - +0.0500 Information for the period April 20 - 24, 2020, issued weekly Secondary Sourced Information: This week, a cooperative export assistance program accepted requests for 2.491 million pounds (1,130 metric tons) of butter and 1.693 million pounds (768 metric tons) of anhydrous milkfat. So far this year, the program has assisted member cooperatives who have contracts to sell 4.264 million pounds of butter (82% milkfat) and 1.960 million pounds of anhydrous milkfat in export markets. When combined with other dairy products, the program has assisted members with sales of 450.3 million pounds of milk on a milkfat basis. The Grade AA butter price at the CME Group on Wednesday closed at $1.1325, compared to the weekly average price of $1.1575 from last week. Published by: Dairy Market News - Madison, WI FLORENCE KONE-GONZALEZ, (608)422-8594 Email: florence.konegonzalez@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