Butter - West
USDA - Wed May 15, 11:28AM CDT
MD_DA440

     Butter - Western U.S.

     Report 20 - Released on May 15, 2019

     Western butter demand continues to give a solid presence. Late last week, butter spot market
     prices on the CME moved well above the $2.30 mark. Prices have held in the mid to upper
     $2.30s through this week. Some market participants are forecasting prices to move higher
     still as cream supplies tighten. Industry contacts say end users are anxious to assure
     coverage and possibly avoid the risk of higher butter prices later in the year. As favorably
     priced bulk offers come available, buyers have been jumping at them. Foodservice demand and
     retail reorders have also been steady. Some retailers are actively promoting print butter.
     So far, butter makers can get the cream needed to keep churns operating near capacity.
     Although cream supplies are tightening, spot cream offers are available. Current cream
     multiples have not yet placed the price for cream above levels that would make it more
     advantageous for the butter maker to sell the cream off.


     National Retail Report Dairy � Butter Summary
     Advertised Prices at Major Retail Supermarket Outlets ending during the period of 5/10/2019
      to 5/16/2019

     Butter 1#                       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
     Alaska                       n.a.          n.a.        n.a.
     Hawaii                       n.a.          n.a.        n.a.
     Northwest                   $2.50         $2.50       $2.50
     Southwest                   $2.99         $2.99       $2.99
     Prices for: Western U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter

     Bulk Basis Pricing  - 80% Butterfat $/LB:              +0.0200 - +0.0700

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

     Secondary Sourced Information:

     CME Closing price
     The Grade AA butter price at the CME Group on Wednesday closed at $2.3725, compared to the
     weekly average price of $2.3025 from last week.


     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


     2019 U.S. Butter and Milkfat Imports (USDA-FAS)
     (Imports for Consumption)
                                                2019 Imports      % Change From
                                                (Million Lb.)       1 Year Ago
     March Imports
       Total Butter, Fats, Milk (H.S. Code 0405)    10.2             + 70
       Butter
        Quota (H.S. Code 405101000)                  0.8             + 20
        Over Quota (H.S. Code 405102000)             7.3             +152
       AMF
        Quota (H.S. Code 405901020)                  0.4             + 76
        Over Quota (H.S. Code 405902020)             1.5             + 61
       Other Milk Fat                                0.1             - 94

                                                2019 Imports      % Change From
                                                (Million Lb.)       1 Year Ago
     TOTAL, JAN - MAR                               25.2             + 34
     Imports � Country of Origin
      1 Ireland                                     13.5             + 28
      2 Mexico                                       4.6             + 65
      3 Australia                                    1.8              ...
      4 India                                        1.0             - 35
      5 New Zealand                                  0.7             - 50
     Published by:
     Dairy Market News - Madison, WI
     MIKE BANDLI, (608)422-8592
     Email: mike.bandli@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/