MD_DA440 Butter - Western U.S. Report 19 - Released on May 12, 2021 In the West, cream is in steady, albeit gradually constricting, supply. Ice cream makers are absorbing ample volumes of cream. Some industry contacts say that, facing both high year- over-year and seasonal demand, ice cream makers cannot make enough ice cream. Some butter manufacturers report selling off a few spot loads of cream and running decreased butter production schedules. Other manufacturers, particularly in the Southwest, are maintaining seasonally active production and trying to stash extra butter in the coolers now for later this year, when cream may be harder to come by. Overall, though, inventories throughout the region are stable. Retail demand is steady to lower. Food service orders are trending strong but level, although there is some variation at the state and even county level. Butter sellers note increases in their food service partners placing either smaller and more frequent just-in-time replenishment orders or placing, and working through, larger and less frequent orders. Accurately forecasting demand remains a challenge for dairy manufacturers and food service customers both. Prices for: Western U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: +0.0100 - +0.0750 Information for the period May 10 - 14, 2021, issued weekly Secondary Sourced Information: CME CLOSING PRICE The Grade AA butter price at the CME Group on Wednesday closed at $1.8500, compared to the weekly average price of $1.7500 from last week. EXPORT ASSISTANCE This week, a cooperative export assistance program accepted requests for export assistance to sell 524,700 pounds (238 metric tons) of butter. So far this year, the program has assisted member cooperatives who have contracts to sell 10.4 million pounds of butter (82% milkfat) and 7.1 million pounds of AMF in export markets. When combined with other dairy products, the program has assisted members with sales of 722.3 million pounds of milk on a milkfat basis. Published by: Dairy Market News - Madison, WI CHELSEA ROCHELLE, 608-422-8594 Email: Chelsea.Rochelle@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
Butter - West