Butter - West
MD_DA440 Butter - Western U.S. Report 33 - Released on August 12, 2020 In the West, the COVID-19 induced uncertainties continue to affect the butter market. In recent days, butter prices have decreased. However, sales have not changed much in the domestic and international markets. In an effort to hedge risk, customers continue to closely monitor the market while cautiously buying butter. Retail sales are stronger compared to the past year, but they are not enough to make up for the market share lost in the food service industry. Bulk butter intakes are weak, whereas inventories are heavy. Print butter inventories are plentiful, but remain lower than bulk butter supplies. This week, butter production has increased a bit with the rise in cream availability. Bulk butter overages have declined at the top of the range. Prices for: Western U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: 0.0000 - +0.0550 Information for the period August 10 - 14, 2020, issued weekly Secondary Sourced Information: The Grade AA butter price at the CME Group on Wednesday closed at $1.4750, compared to the weekly average price of $1.5265 from last week. This week, a cooperative export assistance program accepted requests for 534,842 pounds (243 metric tons) of butter. So far this year, the program has assisted member cooperatives who have contracts to sell 6.823 million pounds of butter (82% milkfat) and 3.117 million pounds of anhydrous milkfat in export markets. When combined with other dairy products, the program has assisted members with sales of 726.6 million pounds of milk on a milkfat basis. 2020 U.S. Butter and Milkfat Imports (USDA-FAS) (Imports for Consumption) 2020 Imports % Change From (Million Lb.) 1 Year Ago June Imports Total Butter, Fats, Milk (H.S. Code 0405) 20.3 + 46 Butter Quota (H.S. Code 405101000) 1.9 + 22 Over Quota (H.S. Code 405102000) 10.2 + 67 AMF Quota (H.S. Code 405901020) 0.4 - 75 Over Quota (H.S. Code 405902020) 3.1 + 23 Other Milk Fat 4.7 +143 2020 Imports % Change From (Million Lb.) 1 Year Ago TOTAL, JAN � JUN 72.6 + 16 Imports � Country of Origin 1 Ireland 36.7 + 17 2 India 12.3 +217 3 Mexico 11.6 - 6 4 France 2.5 + 23 5 Chile 2.2 + 75 2020 U.S. Butter and Milkfat Exports (USDA-FAS) 2020 Exports % Change From (Million Lb.) 1 Year Ago June 5.6 + 10 TOTAL, JAN � JUN 26.1 - 15 Exports � Destination Country 1 Canada 7.9 - 16 2 Mexico 4.9 - 7 3 Saudi Arabia 4.1 + 40 4 South Korea 2.2 - 21 5 Taiwan 1.1 + 40 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