MD_DA451

     Butter Highlights

     Report 42 - Released on October 19, 2018

     Some butter makers say without tergiversations that Q4 holiday orders have begun. Industry
     contacts note butter interest has strengthened. Strong retail orders are reducing
     inventories as expected, and butter makers are making strategic attempts to match production
     levels with orders to control inventories. Processors nationwide are trying to find the
     right balance between churning with financially feasible cream or reworking bulk butter to
     meet Thanksgiving holiday orders. Based on the CME Group, with various periods and averages
     used, this week, bulk butter pricing varies among regions: East, 5.0 cents to 8.0 cents
     above the market; Central, 2.0 cents to 7.0 cents above the market; West, 0.0 cents to 7.0
     cents above the market.

     Information for the period October 15 - 19, 2018, issued weekly

     Secondary Sourced Information:

     The CME Group cash price for Grade AA butter is $2.2600, up $0.0100, compared to last
     Friday¶s price, $2.2500.

     Published by:
     Dairy Market News - Madison, WI
     MIKE BANDLI, (608)422-8592
     Email: mike.bandli@ams.usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: http://www.ams.usda.gov/market-news/dairy
     DMN Database Portal: http://www.marketnews.usda.gov/mnp/da-home