Butter - Northeast USDA - Wed Sep 09, 3:55PM UTC 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
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