MD_DA440

     Butter - Western U.S.

     Report 40 - Released on October 02, 2019

     Western butter contacts seem to suggest that the butter market has a downside feel to it.
     Even now, when market activity is usually at its annual peak, demand is less than hoped for.
     Some manufacturers imply demand could be better. Buyers have filled some of their required
     purchases, but can wait for deals to finish off their Q4 butter needs. Bulk spot load prices
     slipped as processors try to entice shoppers. A few industry contacts report getting
     unsolicited offers from butter makers for spot loads of butter and cream, something unusual
     for this time of year. Cream is readily available and butter inventories, while being drawn
     down seasonally, are larger than preferred. Manufacturers hope activity will improve soon so
     that the year might on a positive note.


     National Retail Report Dairy ± Butter Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 9/27/2019
      to 10/04/2019

     Butter 1#                       Weighted Average Price
     National                  This Period   Last Week   Last Year
     Conventional                $3.61         $3.34       $3.16
     Organic                     $5.49          n.a.       $6.37

     Prices This Period
     Regional (Conventional)    Wtd. Ave.       Low         High
     Northwest                   $3.80         $1.99       $4.79
     Southwest                   $3.99         $3.99       $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:              -0.0250 - +0.0750


     Information for the period September 30 -  October 4, 2019, issued weekly

     Secondary Sourced Information:

     CME Closing price
     The Grade AA butter price at the CME Group on Wednesday closed at $2.1725, compared to the
     weekly average price of $2.1470 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