Butter - West

     Butter - Western U.S.

     Report 9 - Released on March 03, 2021

     Western butter makers are actively producing butter with the plentiful cream available to
     them. Because cream multiples are at lower levels, butter makers are more willing to churn
     butter than sell off extra cream. Inventories are heavy, especially for bulk butter. That
     said, manufacturers report demand has increased both in domestic and export markets. In
     export markets, U.S. butter is favorably priced compared to international competitors. A few
     industry contacts say export butter manufacturing lines are maxed out in efforts to meet
     market demand. In domestic markets, retailers are trying to get ahead of the spring holiday
     baking demand. In addition, bulk buyers are eager to gain coverage for later season butter
     needs and for insulation against potential market uncertainty. The challenge facing butter
     sellers, however, is many buyers want to buy new crop butter at old crop prices. Prices have
     increased on some cash markets due to tighter supplies of new crop butter, but old crop
     butter is still widely available. While this is a point of negotiation, manufacturers feel
     that supplies and prices will work themselves out given time.

     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 - +0.0750

     Information for the period March 1 - 5, 2021, issued weekly

     Secondary Sourced Information:

     The CME Group February 2021 monthly average price for Grade AA butter, $1.3859, is up from
     the January monthly average price of $1.3496, but down from the monthly average of a year
     ago, $1.7913.

     The Grade AA butter price at the CME Group on Wednesday closed at $1.6900, compared to the
     weekly average price of $1.4860 from last week.

     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