Demand for butter has yet to slow down this spring. Both 80 percent and 82 percent varieties are moving out of storage and headed to end usage. Some butter producers are suggesting domestic sales are the lionļs share of their output, but export interest remains strong for others.
The NASS Cold Storage stock increases have some questioning how the markets will react, but butter has been unbending in the face of bearish news in recent months. Although min past weeks cream suppliers and buyers were expecting a jump in cream availability ahead of the holiday weekend, prices have gone unchanged this week. There are expectations that weekend cream prices may dip during and/or after the holiday weekend, as many intake plants will be closed on Monday.
The DMN National Retail Report-Dairy for May 18-24 noted the national weighted average advertised price for a 1 pound package of butter is $3.36, 23 cents above one week ago and 15 cents above than one year ago. The weighted average regional prices in the Midwest and South Central were $2.76 and $2.07, respectively.
Prices for: Central U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing – 80% Butterfat $/LB: +0.0200 – +0.0700
The NASS Cold Storage report noted U.S. butter stocks as of April 30th, 2018 were 307.3 million pounds, a 5 percent increase from last year and up 12 percent from last month. Bulk stocks in all warehouses were 292.3 million pounds last year at this time. Wednesday’s CME Group price for Grade AA butter is $2.3850, compared to $2.3800 last Wednesday.
From Dairy Market News
