MD_DA440 Butter - Western U.S. Report 16 - Released on April 15, 2020 Western butter markets remain mostly absent of food service orders. Bulk butter overages are difficult to ascertain. In some cases, manufacturers say they are unable to sell much, if any, sizeable bulk shipments. Production is active because cream is plentiful and inventories are growing. But butter makers are not overly eager to run the churns more than market opportunities allow. There is a sense of uncertainty that permeates through butter market overtones. However, manufacturers have seen more retail sales. Industry contacts say retail butter demand, while higher than normal, has receded in the last week. The week leading up to the holiday last week end is usually marked with heavy print butter orders. However, with holiday festivities subdued and consumers stocking up in advance of safer at home measures, any holiday sale bumps were masked by current swings in market conditions. Industry contacts are trying to figure out the new market paradigm caused by the COVID-19 pandemic. Many are asking the tough questions: How long will it last? What will markets look like when restrictions eventually ease? The answers are not readily available. 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 13 - 17, 2020, issued weekly Secondary Sourced Information: EXPORT ASSISTANCE This week, a cooperative export assistance program accepted requests for 275,578 pounds (125 metric tons) of butter and 134,482 pounds of anhydrous milkfat. So far this year, the program has assisted member cooperatives who have contracts to sell 1.773 million pounds of butter (82% milkfat) and 266,759 pounds of anhydrous milkfat in export markets. When combined with other dairy products, the program has assisted members with sales of 269.4 million pounds of milk on a milkfat basis. CME CLOSING PRICE The Grade AA butter price at the CME Group on Wednesday closed at $1.1400, compared to the weekly average price of $1.2669 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