MD_DA410

     Butter - Eastern U.S.

     Report 32 - Released on August 05, 2020

     This week, chatter revolves around the summer fall in wholesale spot butter prices. Last
     week, the spot butter price saw a notable drop, $0.1225 for the week. Bearish sentiments
     continue this week, with spot butter prices tumbling $0.1550 on Tuesday. Amidst the limited
     seasonal interest for retail butter and lackluster foodservice demand, butter prices are
     weaker, whereas stocks are increasingly healthy. Foodservice sales have fallen 50 percent
     for some manufacturers and sources reason that the volume of lost foodservice sales appear
     too hefty to recover. Meanwhile, retail butter sales are a notch higher this week.
     Productionwise, churn schedules in the East butter market mirror last week�s, as milk
     supply levels are nearly unchanged. June 2020 year-over-year butter production, in the
     Atlantic region, was lower compared to June the previous year. Cream markets rebounded with
     a surge in demand this week, which has driven multiples up into the high 1.30s and suggests
     less available cream for churning. Bulk butter ranges 2 to 6 cents over the market of the
     CME Group, with various time frames and averages used. The market undertone is weaker.

     CME MONTHLY AVERAGE PRICE
     The CME Group July 2020 monthly average price for AA butter, $1.6925, is down from the
     previous month�s average of $1.8291. One year ago, the CME Group monthly average was
     $2.3897.


     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 - +0.0600

     Information for the period August 3 - 7, 2020, issued weekly

     Secondary Sourced Information:

     DAIRY PRODUCTS REPORT � BUTTER SUMMARY
     Released August 4, 2020, by the National Agricultural Statistics Service (NASS),
     Agricultural Statistics Board, United States Department of Agriculture (USDA).

     Butter Production � States and United States: June 2019 and 2020
                        Monthly Production (1000 pounds)    Percent Change from
                          June         May        June         June      May
     Region               2019        2020        2020         2019     2020
     United States     154,848     177,966     150,018         -3.1    -15.7

     Atlantic           14,824      16,370      14,335         -3.3    -12.4


     Butter Production � Cumulative Production January - June
                      Cumulative Production   Percent Change
                            (1000 pounds)         from
     Report Month         2019        2020        2019
     June            1,049,166   1,122,858         7.0

     CME TRADING
     CME Group�s Tuesday spot butter trading ended at $1.4250, down from $1.7100 a week ago.

     EXPORT ASSISTANCE
     This week, a cooperative export assistance program accepted requests for export assistance
     to sell 41,888 pounds (19 metric tons) of butter.




     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