Butter - Central
USDA - Wed Oct 09, 11:25AM CDT
MD_DA431

     Butter - Central U.S.

     Report 41 - Released on October 09, 2019

     Butter inventories are reportedly in balance, but producers suggest fall demand is beginning
     to or about to begin getting chipped down. Cream availability is similar. Butter makers are
     finding loads regionally, as well as receiving offers out of the  Western region. Multiples
     continue to be reported in the low/mid 1.20s for butter churning. That said, churning and
     overall production vary plant to plant. Some producers are churning for specific requests,
     but with fall inventories in balance, some say they are running churns lighter. Butter
     market tones remain in a questionable place. As storage reports were expected to be
     potentially bearish, the numbers relayed a more bullish potential for Q4. However, market
     tones have yet to receive that memo and continue to skim the low end of the annual range.



     National Retail Report Dairy � Butter Summary
     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
     Midwest                     $3.32         $2.88       $3.99
     South Central               $3.64         $2.99       $3.99
     Prices for: Central U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter

     Bulk Basis Pricing  - 80% Butterfat $/LB:              0.0000 - +0.0300

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

     Secondary Sourced Information:

     The CME Group September 2019 monthly average price was $2.1690, compared to $2.2942 in
     August.

     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
     ISRAEL WEBER, 608-422-8601
     Email: israel.weber@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