MD_DA440 Butter - Western U.S. Report 6 - Released on February 08, 2023 In the West plentiful cream volumes are readily available. Steady to higher cream demand continues. Cream multiplies contracted on the top end this week. Butter production is strong as butter producers run busy schedules. Butter inventories outpace current demand, but holders want to assure coverage for midyear demand. Retail demand is light, and some contacts note retail demand is well below forecasted levels. Despite some stakeholders buying additional loads to fulfill contracted orders, the light spot market sales from the start of the year continue. Export demand for unsalted butter inventories is steady, keeping unsalted butter inventories tighter than salted butter inventories. The Global Dairy Trading Event 325 on February 7, 2023 ended with butter prices increasing 6.6 percent for all contracts. Grade AA butter increased 6.50 cents, to $2.3950 on the CME, since last Wednesday. Bulk butter overages range from flat to 10.0 cents above the market value. 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 - +0.1000 Information for the period February 6 - 10, 2023, issued weekly Secondary Sourced Information: The CME Group January monthly average price for Grade AA butter was $2.3553, compared to $2.6695 a month ago. U.S. BUTTER AND MILKFAT EXPORTS (USDA-FAS) 2022 Exports % Change From (Million Lb.) 1 Year Ago TOTAL, DECEMBER 10.4 - 4 TOTAL, JAN-DEC 180.9 + 44 Exports - Destination Country 1 Canada 77.7 +109 2 Mexico 31.9 +336 3 Bahrain 19.7 + 38 4 South Korea 19.3 +154 5 Saudi Arabia 4.9 - 55 U.S. BUTTER AND MILKFAT IMPORTS (USDA-FAS) (Imports for Consumption) 2022 Imports % Change From (Million Lb.) 1 Year Ago December Imports Total Butter, Fats, Milk (H.S. Code 0405) 14.0 + 11 Butter Quota (H.S. Code 405101000) 1.1 + 1 Over Quota (H.S. Code 405102000) 7.8 + 6 AMF Quota (H.S. Code 405901020) 2.8 + 67 Over Quota (H.S. Code 405902020) 0.3 + 57 Other Milk Fat 2.0 + 15 2022 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN-DEC 149.1 + 14 Imports - Country of Origin 1 Ireland 84.9 + 4 2 New Zealand 21.2 + 59 3 India 19.7 + 37 4 France 7.0 + 37 5 Mexico 4.6 + 27 Published by: Dairy Market News - Madison, WI Andrew Mattheis, 608-422-8590 Email: andrew.mattheis@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