MD_DA451 Butter Highlights Report 29 - Released on July 22, 2022 Cream is available in the Central region, though contacts report inventories are tightening in the Northeast and West. Butter and ice cream makers are keeping demand robust, in the West. Plant managers in the Central region say labor shortages may be a new normal. Some butter makers in the Northeast are running active schedules, while others are running below capacity due to labor shortages, high cream multiples, and softening domestic demand. Meanwhile, some contacts in the West say labor shortages are causing them to run below capacity. Butter inventories are tight in the Northeast. Inflationary pressures are affecting some grocery shoppers in the Northeast and West, who may be reducing their consumption or utilizing some butter alternatives. Demand for butter is seasonally steady in the Central region. Throughout this week, CME market prices for butter have been in the low to mid $2.90s. Bulk butter overages range from 2 to 15 cents above market, across all regions. Information for the period July 18 - 22, 2022, issued weekly Secondary Sourced Information: CME: Grade AA closed at $2.9075 The weekly average for Grade AA is $2.9305 (-0.0165). 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