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
Butter - Northeast