Butter - Northeast
MD_DA410

     Butter - Eastern U.S.

     Report 37 - Released on September 09, 2020

     Churning continues on a very active basis for some Eastern butter plants, but tighter
     availability of excess cream, attributable to contracted cream fulfillment, prevents other
     plants from reaching full production levels. Butter stocks are more than adequate to meet
     current orders. While fall butter interest is improving, some manufacturers view current
     retail demand as below expectations. Retail grocery chains are placing orders, with plans to
     feature standalone butter, as the baking season arrives. Sources indicate that foodservice
     demand is the best it has been since the start of the pandemic. Export interest has been
     substantial. Bulk sales are steady. The wholesale bulk butter price ranges 2-7 cents over
     the CME, with various time frames and averages used. In years past butter prices edged up
     through the summer and held there as holiday orders were being placed. However, there is
     quite a bit of instability in the market as price changes occur more frequently in the
     COVID-19 pandemic. The current butter market undertone is unsettled.



     Prices for: Eastern U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter

     Bulk Basis Pricing  - 80% Butterfat $/LB:              +0.0200 - +0.0700


     Information for the period September 7 - 11, 2020, issued weekly

     Secondary Sourced Information:

     CME TRADING
     CME Group�s Tuesday spot butter trading ended the day at $1.5000 up from the $1.4650 close
     a week ago.

     CME MONTHLY AVERAGE PRICE
     The CME Group August 2020 monthly average price for AA butter, $1.5038, is down from the
     previous average of $1.6925. One year ago, the CME Group monthly average was $2.2942.


     DAIRY PRODUCTS REPORT � BUTTER SUMMARY
     Released September 3, 2020, by the National Agricultural Statistics Service (NASS),
     Agricultural Statistics Board, United States Department of Agriculture (USDA).

     Butter Production � States and United States: July 2019 and 2020
                        Monthly Production (1000 pounds)    Percent Change from
                          July        June        July         July     June
     Region               2019        2020        2020         2019     2020
     United States     150,705     150,200     151,799          0.7     1.1

     Atlantic           12,637      14,460      13,073          3.5    -9.6

     Butter Production � Cumulative Production January - July
                      Cumulative Production   Percent Change
                            (1000 pounds)         from
     Report Month         2019        2020        2019
     July            1,199,871   1,274,839         6.2

     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