MD_DA440 Butter - Western U.S. Report 18 - Released on May 05, 2021 Western cream is tightening a bit. Available supplies are still adequate to meet demand throughout the region, however. Ice cream makers are working through heavy volumes of cream, and butter operations are receiving steady supplies to maintain seasonally active production schedules. Overall, inventories are stable. Southwestern contacts relay concerns about cream outlook this summer; some creameries are working to grow butter inventories now to insulate against potential uncertainties later this year. Retail orders are steady to lower. Food service demand appears to be leveling off, for now, after weeks of growth. Dine-in restrictions continue to relax in many locales, but growing COVID case rates and hospitalizations are leading other areas to maintain or even strengthen current restrictions. These wide-ranging, and quickly changing, conditions pose a challenge to accurately forecasting bulk butter needs. Some contacts expect that food service demand will continue to come in waves. 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 - +0.0750 Information for the period May 3 - 7, 2021, issued weekly Secondary Sourced Information: CME CLOSING PRICE The Grade AA butter price at the CME Group on Wednesday closed at $1.7350, compared to the weekly average price of $1.7860 from last week. CME GROUP MONTHLY AVERAGES The CME Group April 2021 monthly average price for Grade AA butter was $1.8267, up from the March monthly average price of $1.7153. EXPORT ASSISTANCE This week, a cooperative export assistance program accepted requests for export assistance to sell 1.213 million pounds (550 metric tons) of anhydrous milkfat (AMF). So far this year, the program has assisted member cooperatives who have contracts to sell 9.9 million pounds of butter (82% milkfat) and 7.1 million pounds of AMF in export markets. When combined with other dairy products, the program has assisted members with sales of 706.8 million pounds of milk on a milkfat basis. DAIRY PRODUCTS REPORT – BUTTER SUMMARY Released May 4, 2021, by the National Agricultural Statistics Service (NASS), Agricultural Statistics Board, United States Department of Agriculture (USDA). Butter Production – States and United States: March 2020 and 2021 Monthly Production (1000 pounds) Percent Change from MAR FEB MAR MAR FEB Region 2020 2021 2021 2020 2021 United States 200,040 186,304 198,935 -0.6 6.8 Atlantic 21,739 17,438 18,624 -14.3 6.8 Central 76,979 75,166 76,459 -0.7 1.7 West 101,322 93,700 103,852 2.5 10.8 California 61,009 57,003 62,606 2.6 9.8 Butter Production – Cumulative Production January - March Cumulative Production Percent Change (1000 pounds) from Report Month 2020 2021 2020 MAR 599,723 594,869 -0.8 2021 U.S. BUTTER AND MILKFAT IMPORTS (USDA-FAS) (Imports for Consumption) 2021 Imports % Change From (Million Lb.) 1 Year Ago March Imports Total Butter, Fats, Milk (H.S. Code 0405) 12.8 + 47 Butter Quota (H.S. Code 405101000) 1.8 +125 Over Quota (H.S. Code 405102000) 8.4 +197 AMF Quota (H.S. Code 405901020) 0.3 - 69 Over Quota (H.S. Code 405902020) 0.4 - 86 Other Milk Fat 1.9 + 51 2021 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN-MAR 22.6 - 14 Imports – Country of Origin 1 Ireland 12.5 + 47 2 India 3.8 - 29 3 New Zealand 2.6 + 97 4 France 1.0 - 30 5 United Kingdom 0.9 + 25 2021 U.S. BUTTER AND MILKFAT EXPORTS (USDA-FAS) 2021 Exports % Change From (Million Lb.) 1 Year Ago TOTAL, MAR 10.0 +138 TOTAL, JAN-MAR 25.7 +110 Exports – Destination Country 1 Canada 6.7 + 28 2 Egypt 4.3 +259,345 3 Saudi Arabia 3.5 +601 4 Bahrain 1.9 +965 5 Denmark 1.9 ... Published by: Dairy Market News - Madison, WI CHELSEA ROCHELLE, 608-422-8594 Email: Chelsea.Rochelle@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