Butter - West
MD_DA440

     Butter - Western U.S.

     Report 49 - Released on December 02, 2020

     The butter market is showing some pop as prices trend higher this week in corrections to
     prices that have been much lower than some industry sources expected. Otherwise, churning is
     highly active, parallel to the uptick in Western milk production. Cream supply is above
     sufficient as multiples range 1.05 � 1.21. Determined defines some butter manufacturers�
     efforts to keep inventories in balance after gauging their post-Thanksgiving butter supply.
     Print demand continues to surprise, with good interest from retailers� re-stock orders.
     Current export interest helps address heavy stock volumes. The most recent Global Dairy
     Trading (GDT) butter price maintains the competitiveness of U.S. butter price in the export
     market. Food service demand is seeing declines, now that there is less butter needed for the
     USDA food box program. Inquiries are active for bulk, into Q1 2021. The current wholesale
     butter prices for domestic sales are reported $0.0450 to $0.0750 cents over the market of
     the CME Group, with various time frames and averages used. Butter prices are firming in an
     unsettled market.



     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 November 30 -  December 4, 2020, issued weekly

     Secondary Sourced Information:

     CME TRADING

     The Grade AA butter price at the CME Group on Wednesday closed at $1.4575, compared to the
     weekly average price of $1.3292 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