MD_DA440

     Butter - Western U.S.

     Report 43 - Released on October 21, 2020

     Butter production levels are variable in the West. Projected orders are coming in at
     expected levels and being satisfied using stored inventory in addition to new butter
     production. Sourcing cream has not been a problem for West butter makers, availability ticks
     higher, even as seasonal competition from Class II manufacturing takes form. Cream multiples
     range 1.05-1.26. Print manufacturing is very active and unsalted butter demand has increased
     with the shift to the baking season. Regional factors that hamper sales in the foodservice
     sector are ongoing and broadly curb total volumes sold. Export orders continue to advance
     butter supplies to offshore customers. 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
     market underscores firmness as butter prices incrementally climb.
     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 19 - 23, 2020, issued weekly

     Secondary Sourced Information:

     The Grade AA butter price at the CME Group on Wednesday closed at $1.4525,compared to the
     weekly average price of $1.4825 from last week.
     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