Butter - West
MD_DA440

     Butter - Western U.S.

     Report 41 - Released on October 09, 2019

     Although butter supplies are declining, they are plentiful in the Western region. With cream
     being available at affordable prices, butter production has been active. While retail and
     bulk butter demands are solid, they are below the industry's expectations. As sellers are
     looking into alternative ways to further increase sale volumes, some buyers on the other
     hand, are on the lookout for good deals because some of their Q4 needs have been fulfilled
     and they are not urgently needing purchase. Beginning October 18, the U.S. will be imposing
     a 25 percent tariff on incoming European butter and other dairy products if consensus is not
     reached about trade issues. International butter prices at the present time are below U.S.
     prices, giving a competitive advantage to global suppliers. Overall, the butter market
     undertone is a bit weak. Bulk butter prices are steady on the range.

     Advertised Prices at Major Retail Supermarket Outlets ending during the period of
     10/04/2019 to 10/10/2019

     Butter 1#                       Weighted Average Price
     National                  This Period   Last Week   Last Year
     Conventional                $3.94         $3.61       $3.31
     Organic                      n.a.         $5.49       $5.07

     Prices This Period
     Regional (Conventional)    Wtd. Ave.       Low         High
     Northwest                   $4.29         $3.89       $4.79
     Southwest                   $4.10         $2.99       $4.99
     Prices for: Western U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter

     Bulk Basis Pricing  - 80% Butterfat $/LB:              -0.0250 - +0.0750


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

     Secondary Sourced Information:

     The Grade AA butter price at the CME Group on Wednesday closed at $2.0575, compared to the
     weekly average price of $2.1595 from last week.

     The CME Group September 2019 monthly average price for AA butter, $2.1690, compared to the
     August 2019 monthly average of $2.2942. One year ago the CME Group monthly average was
     $2.2545.

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

     BUTTER Imports Table
     2019 U.S. Butter and Milkfat Imports (USDA-FAS)
     (Imports for Consumption)
                                                2019 Imports      % Change From
                                                (Million Lb.)       1 Year Ago
     August Imports
       Total Butter, Fats, Milk (H.S. Code 0405)    13.7             + 13
       Butter
        Quota (H.S. Code 405101000)                  0.9             - 14
        Over Quota (H.S. Code 405102000)             9.3             + 27
       AMF
        Quota (H.S. Code 405901020)                  0.3             - 23
        Over Quota (H.S. Code 405902020)             0.7             - 52
       Other Milk Fat                                2.4             + 30

                                                2019 Imports      % Change From
                                                (Million Lb.)       1 Year Ago
     TOTAL, JAN � AUG                               88.4             + 25
     Imports � Country of Origin
      1 Ireland                                     47.7             + 32
      2 Mexico                                      14.8             +  3
      3 India                                        7.1             - 13
      4 Australia                                    4.5            +1067
      5 New Zealand                                  3.6             -  7


     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

     Central            53,954      54,688      54,494           1.0      -0.4

     West               67,965      75,187      70,490           3.7      -6.2
        California      41,451      45,107      43,378           4.6      -3.8


     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
     Published by:
     Dairy Market News - Madison, WI
     FLORENCE KONE-GONZALEZ, (608)422-8594
     Email: florence.konegonzalez@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