Butter - West USDA - Wed Mar 03, 9:25PM UTC MD_DA440
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:
CME GROUP MONTHLY AVERAGES
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.
CME CLOSING PRICE
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
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