MD_DA410

     Butter - Eastern U.S.

     Report 44 - Released on October 28, 2020

     The bearish sentiments of last week�s CME butter price tracked into this week as prices
     continued to weaken in an unbalanced market. The East cream market wields a notable
     contrast, as tight cream supplies led to heady multiples, ranging 1.41-1.45. A few loads are
     rumored to have moved using the name-your-own-price strategy as supplies became even more
     constricted. However, seasonal impact secures butter interest with holiday orders holding up
     well. The largest portion of Thanksgiving butter needs has been ordered and delivered, as
     Christmas/New Year orders continue to be booked. Orders from food service have spiked
     following USDA�s 4th round authorization of the Farmers to Families Food Boxes. Retail
     butter demand tracks a seasonal rise. Butter manufacturers and market traders are confident
     that existing churn schedules and inventoried stocks are sufficient to carry them through
     the final quarter of the year. The current bulk butter prices for domestic sales are
     reported 2-7 cents over the market of the CME Group, with various time frames and averages
     used.
     Prices for: Eastern 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 October 26 - 30, 2020, issued weekly

     Secondary Sourced Information:

     CME TRADING
     CME Group�s Tuesday spot butter trading ended the day at $1.4075 up from the $1.4975 close
     a week ago.

     EXPORT ASSISTANCE
     This week, a cooperative export assistance program accepted requests for export assistance
     to sell 956,806 pounds (434 metric tons) of butter.

     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
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov