MD_DA451 Butter Highlights Report 30 - Released on July 29, 2022 Cream availability is tightening throughout the country. Contacts in the West say milk output and cream production are decreasing due to seasonally higher temperatures in parts of the region. New butter production is limited in the Central region. In the Northeast and West regions, butter output is declining as labor shortages are curtailing some production facilities' operating capacity. Butter inventories are tight in the Northeast and Central regions. Some Central region contacts say they are sourcing loads of butter from the West. Retail demand for butter is softening in all regions, and food service sales are slowing in the Northeast and West. Meanwhile, contacts in the Central region have reported a spike in food service sales this week. Stakeholders say bulk butter sales are strong in the West, as some purchasers are concerned that inventories will tighten in the coming months. Bulk butter overages range from 2 to 15 cents above market, across all regions. Information for the period July 25 - 29, 2022, issued weekly Secondary Sourced Information: CME: Grade AA closed at $2.9900. The weekly average for Grade AA is $2.9650 (+0.0345). Published by: Dairy Market News - Madison, WI ROMAN CARAMAN, 608-422-8593 Email: roman.caraman@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