MD_DA431

     Butter - Central U.S.

     Report 40 - Released on September 30, 2020

     Butter production continues steadily at Midwestern plants. Cream supplies have begun to
     tighten in the East, but regional butter makers are still finding spots at similar multiples
     locally and from the West. There are some expectations from butter plant managers that cream
     could tighten in the near term. Retail and food service demand is reported as stronger week
     to week. Retail customers, in some cases, have been given notice that butter quarters may be
     short in the final quarter of the year. Butter contacts suggest current retail loss leader
     promotions may be short lived. Although bulk butter is clearly available, production
     capacity is limited for grocery retail orders. Butter market tones are feeling the bearish
     effect of cold storage increases, but contacts' Q4 expectations are mixed from sideways to
     bullish.
     Prices for: Central U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter

     Bulk Basis Pricing  - 80% Butterfat $/LB:              0.0000 - +0.0500


     Information for the period September 28 -  October 2, 2020, issued weekly

     Published by:
     Dairy Market News - Madison, WI
     ISRAEL WEBER, 608-422-8601
     Email: israel.weber@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