MD_DA440

     Butter - Western U.S.

     Report 4 - Released on January 22, 2020

     Western butter makers say buyers are placing orders, but are making their purchases in a bit
     of a pell-mell fashion. In some cases, retailers are replenishing stocks following the
     winter holidays and preparing for the spring holidays. Bulk butter buyers, prompted by lower
     prices, are laying on coverage for near-term needs. But other end users are slow to go after
     butter offers, feeling content with their current holdings and noting the wide availability
     of cream. Manufacturers report cream multiples are low. However, they are passing on some of
     the cream. Processors are using this time between holidays to do necessary maintenance and
     are controlling inventories where possible. Butter stocks are comfortable and can cover most
     any request. The weekly average cash butter price on the CME is below the price of the
     previous four years at this time.

     DMN National Retail Report
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of
     01/17/2020 to 01/23/2020
     Butter 1#                       Weighted Average Price
     National                  This Period   Last Week   Last Year
     Conventional                 $3.34        $3.40       $3.23
     Organic                      $5.49        $5.49        n.a.

                                       Prices This Period
     Regional (Conventional)     Wtd. Ave.      Low         High
     Alaska                       $5.99        $5.99       $5.99
     Midwest                      $3.45        $2.99       $3.99
     Northwest                    $3.13        $2.49       $3.49
     Southwest                    $2.39        $1.99       $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:              +0.0100 - +0.0800


     Information for the period January 20 - 24, 2020, issued weekly

     Secondary Sourced Information:

     Cold Storage – Butter Summary
     Released January 22, 2020, by the National Agricultural Statistics Service (NASS),
     Agricultural Statistics Board, United States Department of Agriculture (USDA).

                                                                       12/31/19
                    Stocks in all Warehouses (1,000 pounds)    as a percent of
                       12/31/18     11/30/19     12/31/19     12/31/18   11/30/19
     Butter Stocks      179,333      180,637      189,987       106        105


     CME Closing Price
     The Grade AA butter price at the CME Group on Wednesday closed at $1.8650, compared to the
     weekly average price of $1.8990 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