Butter - West
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