Butter - Northeast
MD_DA410

     Butter - Eastern U.S.

     Report 41 - Released on October 09, 2019

     Butter production rates remain steady for most butter manufacturers in the East region.
     Manufacturers' butter inventories are adequate. As butter prices dipped this week, the
     market's bearish guise attests to the existing lackluster butter demand. Nevertheless, the
     market expects an upsurge in activity as buyers/sellers acquire a clearer picture of their
     approaching holiday butter needs. As customer orders develop for manufacturers, some note
     that in-house supplies are below projections. Ultimately, at some point, those processors
     may seek surplus cream loads in the spot market. The bulk butter price for domestic sales on
     the spot market is 5-8 cents over the market of the CME Group, with various time frames and
     averages used. Concurrent to the lower butter price, the market displays a slight firmness
     in the region's cream multiples this week. Spot market cream trades occurred with multiples
     hovering in the 1.30-1.33 range. On the retail front, scheduled store features increased,
     stimulating print butter sales. The butter market undertone is generally weak.

     NATIONAL RETAIL REPORT DAIRY � 1# BUTTER
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 10/4/2019
      to 10/10/2019
                         Retail Butter Prices
                             (Wtd. Avg)

     NATIONAL       This Period   Last Week   Last Year
     Conventional     $3.94        $3.61       $3.31
      Organic          n.a.        $5.49       $5.07

     REGIONAL
     Conventional   This Period      Low        High
     Northeast        $3.86        $2.99       $4.99
     Southeast        $3.92        $3.50       $3.99
     Prices for: Eastern U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter

     Bulk Basis Pricing  - 80% Butterfat $/LB:              +0.0500 - +0.0800

     Information for the period October 7 - 11, 2019, issued weekly

     Secondary Sourced Information:

     CME GROUP
     Grade AA butter closed $2.1025, at the CME Group on yesterday, down from $2.1275 the
     previous Tuesday.

     CME Monthly Average
     The CME Group September 2019 monthly average price for Grade AA butter, $2.1690, is down
     from the August average of $2.2942. One year ago, the CME Group monthly average was
     $2.2545.

     DAIRY PRODUCTS REPORT � BUTTER SUMMARY
     Released October 3, 2019, by the National Agricultural Statistics Service (NASS),
     Agricultural Statistics Board, United States Department of Agriculture (USDA).

     Butter Production � States and United States: August 2018 and 2019
                        Monthly Production (1000 pounds)      Percent Change from
                           Aug        July         Aug           Aug      July
     Region               2018        2019        2019          2018      2019
     United States     133,571     142,541     136,423           2.1      -4.3

     Atlantic           11,652      12,666      11,439          -1.8      -9.7
        Pennsylvania     5,427       6,856       6,097          12.3     -11.1


     Butter Production � Cumulative Production January - August
                      Cumulative Production   Percent Change
                            (1000 pounds)         from
     Report Month         2018        2019        2018
     August          1,287,254   1,277,109        -0.8


     2019 U.S. Butter and Milkfat Exports (USDA-FAS)

                      2019 Exports      % Change From
                      (Million Lb.)       1 Year Ago

     August                4.2             - 55

     TOTAL, JAN � AUG     37.5             - 42
     Exports � Destination Country
      1 Canada            12.3             - 44
      2 Mexico             6.0             - 68
      3 South Korea        3.2             +119
      4 Columbia           3.2             +647
      5 Saudi Arabia       3.1             - 11
     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