Butter - West - Wed Aug 12, 8:25PM UTC 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
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