MD_DA440

     Butter - Western U.S.

     Report 39 - Released on September 25, 2019

     In the West, the interest in butter has somewhat weakened as buyers take a break to
     reevaluate market conditions, hoping that prices will fall. Buyers' confidence in finding
     the supplies they need whenever they feel the need for it is also stronger. As a result,
     most buyers with immediate needs are looking into purchasing in the short-term. Others are
     waiting for the low of lows prices before jumping in. According to industry contacts,
     retailers are aggressively preparing for the holiday sales as they plan to use that
     opportunity to maximize profits. Cream is available to butter processors, but they are not
     easily getting discounted loads. Churning activities are steady, and butter supplies are
     readily available. Additionally, expensive prices in the domestic market compared to the
     global market and the strong value of the dollar have led to more imports of anhydrous milk
     fat or butter. Bulk butter prices have kept the same range as in the previous week.

     National Retail Report Dairy ± Butter Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 9/20/2019
      to 9/26/2019

     Butter 1#                       Weighted Average Price
     National                  This Period   Last Week   Last Year
     Conventional                $3.34         $3.67       $3.35

     Prices This Period
     Regional (Conventional)    Wtd. Ave.       Low         High
     Northwest                   $4.07         $2.99       $4.79
     Prices for: Western U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter

     Bulk Basis Pricing  - 80% Butterfat $/LB:              0.0000 - +0.0750


     Information for the period September 23 - 27, 2019, issued weekly

     Secondary Sourced Information:

     The Grade AA butter price at the CME Group on Wednesday closed at $2.1425, compared to the
     weekly average price of $2.1370 from last week.

     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 4.5 million pounds of butter (82% milkfat) and 277,782 pounds of
     anhydrous milkfat in export markets. When combined with other dairy products, the program
     has assisted members with sales of 819.6 million pounds of milk on a milkfat basis.

     Cold Storage ± Butter Summary
     Released September 23, 2019, by the National Agricultural Statistics Service (NASS),
     Agricultural Statistics Board, United States Department of Agriculture (USDA).

                                                                       8/31/19
                    Stocks in all Warehouses (1,000 pounds)    as a percent of
                        8/31/18     7/31/19     8/31/19     8/31/18    7/31/19
     Butter Stocks      290,851     329,595     305,123         105         93

     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