MD_DA440

     Butter - Western U.S.

     Report 7 - Released on February 13, 2019

     Western butter processors are proactively running churns to clear ample supplies of cream.
     Cream is plentiful throughout the West, and some distressed loads are moving out of the
     region at discounted prices. Bulk butter is being intensively stored for use later in the
     year. In general, retail and club store sales of butter are good. Although producers would
     prefer to make more sales right now, they are content with their current inventory levels
     and are managing their supplies efficiently. Some of the processors have increased their
     production capacities and are manufacturing butter at a higher rate than last year. Bulk
     butter is priced at 2 cents below to 7.5 cents above the market, based on the CME Group with
     various periods and averages used.

     National Retail Report Dairy ± Butter Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 2/08/2019
      to 2/14/2019

     Butter 1#                         Weighted Average Price
     National                  This Period        Last Week     Last Year
      Organic                     $5.18              n.a.         $5.22
      Conventional                $3.58             $3.55         $3.56

                                       Prices This Period
     Regional (Conventional)     Wtd. Ave.           Low           High
      Northwest                   $3.46             $2.50         $3.99
      Southwest                   $4.52             $3.49         $4.99
     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 February 11 - 15, 2019, issued weekly

     Secondary Sourced Information:

     The Grade AA butter price at the CME Group on Wednesday closed at $2.2375, compared to last
     week's weekly average price of $2.2850.

     This week, a cooperative export assistance program accepted requests for 220,462 pounds
     (100 metric tons) of butter. So far this year, the program has assisted member cooperatives
     who have contracts to sell 928,146 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