MD_DA440 Butter - Western U.S. Report 44 - Released on October 28, 2020 In the West, there has been chatter that machine time is tight and sidetracks butter production. As such, some market representatives were surprised by drops in the midweek CME butter price. Hence, there is market uncertainty as to where prices will stabilize. While there are inventory drawdowns occurring, which supports price, some manufacturers note that pulls need to occur continuously to prevent any gyration. Production rates vary, but are generally higher as manufacturers look to fill seasonally increasing sales. Interest from retail butter accounts remain fairly active. Restaurant and foodservice outlets would typically be experiencing increased traffic flows at this time of year, but distributors are not quite sure how much to purchase for the remainder of the year. Cream for churning is readily available, with loads moving across regions. Current prices for bulk butter range from +.0200 to +.0750 over the market, based on the CME, with various time frames and averages used. The butter market undertone is unsettled. Prices for: Western U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: +0.0200 - +0.0750 Information for the period October 26 - 30, 2020, issued weekly Secondary Sourced Information: CME CLOSING PRICE The Grade AA butter price at the CME Group on Wednesday ended the day at $1.3825,compared to last Wednesday's close of $1.4525. EXPORT ASSISTANCE This week, a cooperative export assistance program accepted requests for 956,806 pounds (434 metric tons) of butter. So far this year, the program has assisted member cooperatives who have contracts to sell 9.401 million pounds of butter (82% milkfat) and 1.982 million pounds of anhydrous milkfat in export markets. Published by: Dairy Market News - Madison, WI DANIEL JOHNSON, 608-422-8605 Email: daniel.johnson4@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