Butter - West
USDA - Wed Feb 06, 3:27PM CST
MD_DA440

     Butter - Western U.S.

     Report 6 - Released on February 06, 2019

     In the West, churns continue to run on busy schedules. Contracted cream supplies are still
     strong, whereas some reports suggest that spot load offers have dropped slightly.
     Nevertheless, butter manufacturers are content with their stocks of butter as they have a
     lot to offer to potential and existing buyers. Sales of butter are good in the retail
     sector, but backed off somewhat in the food service industry. Wet and snowy weather
     conditions in some areas of the West have impacted sale activities. Export interest is
     stable and in line with expectations. To the surprise of several industry players, butter
     prices are higher than usual. Bulk butter is evaluated at 2 cents beneath to 7.5 cents
     above the market, based on the CME Group with various periods and averages used.

     National Retail Report Dairy � Butter Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 2/01/2019
      to 2/07/2019

     Butter 1#                      Weighted Average Price
     National                    This Period   Last Week    Last Year
      Organic                       n.a.        $5.29       $5.40
      Conventional                 $3.55        $3.30       $3.79

                                    Prices This Period
     Regional (Conventional)      Wtd. Ave.     Low         High
      Northwest                    $3.99        $3.99       $3.99
      Southwest                    $3.80        $2.49       $4.49
     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 February 4 - 8, 2019, issued weekly

     Secondary Sourced Information:

     The Grade AA butter price at the CME Group on Wednesday closed at $2.2850, compared to the
     weekly average price of $2.2835 of a week ago.

     The CME Group January 2019 monthly average price for AA butter, $2.2481, is up from the
     December 2018 monthly average of $2.2071. One year ago the CME Group monthly average was
     $2.1587.

     Dairy Products Report � Butter Summary
     Released February 4, 2019, by the National Agricultural Statistics Service (NASS),
     Agricultural Statistics Board, United States Department of Agriculture (USDA).

     Butter Production � States and United States: November 2017 and 2018

                        Monthly Production (1000 pounds)      Percent Change from
                          Nov.        Oct.        Nov.          Nov.      Oct.
     Region               2017        2018        2018          2017      2018
     United States     149,721     143,480     145,637          -2.7       1.5

     Atlantic           14,940      13,651      13,035         -12.8      -4.5
        Pennsylvania     7,279       6,483       6,127         -15.8      -5.5

     Central            65,351      59,068      63,262          -3.2       7.1

     West               69,430      70,761      69,340          -0.1      -2.0
        California      42,079      40,972      41,258          -2.0       0.7

     Butter Production � Cumulative Production January - November

                      Cumulative Production   Percent Change
                            (1000 pounds)         from
     Report Month         2017        2018        2017
     November        1,676,368   1,712,656         2.2
     Published by:
     Dairy Market News - Madison, WI
     FLORENCE KONE-GONZALEZ, (608)422-8594
     Email: Florence.KoneGonzalez@ams.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 (MyMarketNews): https://mymarketnews.ams.usda.gov/
     DMN Database Portal: https://www.marketnews.usda.gov/mnp/da-home