Butter - Northeast
USDA - Wed May 15, 7:00AM CDT

     Butter - Eastern U.S.

     Report 20 - Released on May 15, 2019

     The driving force of the uptick in butter production, in the northern portion on the East
     region, is heavier milk receipts into butter/powder operations. Conversely, butter
     production for operations in other areas of the region is moving at a trot, with lower
     volumes of milk intakes being prominent. In general, new production is increasing inventory
     volume, but spot sales are assisting the maintenance of inventories. Churns are primarily
     scheduled around 80 percent butter runs, with 82 percent runs occurring as needed. Spot
     cream availability increased this week, with increased offers from suppliers. Over the
     weekend, the market moved a few loads of distressed cream with multiples in the low 1.20s,
     but multiples have since recovered to the present high 1.20s to mid 1.30s. The bulk butter
     price for domestic sales, in the East, is reported 6-8 cents over the CME market, with
     various time frames and averages used. Domestic sales continue to garner interest in food
     service channels, as the market in general touts bullishness. However, transactions are
     moderate to lower in the global arena, around less competitive prices.

     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 5/10/2019
      to 5/16/2019

                         Weighted Average Price

     National      This Period  Last Week  Last Year
      Organic         $6.18        $6.09      $6.29
      Conventional    $3.60        $3.68      $3.13

                           Prices This Period
     Regional (Conventional)
                     Wtd. Ave.      Low        High
      Northeast       $3.78        $2.99      $4.99
      Southeast       $3.76        $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:              +0.0600 - +0.0800

     Information for the period May 13 - 17, 2019, issued weekly

     Secondary Sourced Information:

     Tuesday�s CME Group cash trading saw Grade AA butter close at $2.3500, up $0.0550 from a
     week ago.

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

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

     March                 5.5             - 34

     TOTAL, JAN - MAR     17.1             -  6
     Exports � Destination Country
      1 Canada             5.6             - 16
      2 Columbia           2.7              ...
      3 Saudi Arabia       2.4             + 63
      4 Mexico             2.1             - 46
      5 South Korea        1.3             +114

     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
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