MD_DA440 Butter - Western U.S. Report 3 - Released on January 19, 2022 Cream demand is unchanged as contacts report that inventories are available for production. Stakeholders say that they are sending loads of cream to the Midwest, where inventories are tighter, to help meet their production needs. Some cream loads are, reportedly, facing delays caused by bad weather and a shortage of truck drivers. Strong demand for butter is present in both domestic and international markets. Butter inventories are tight. Spot purchasers say that loads of salted butter are easier to obtain than unsalted. Market prices for butter have risen, on the CME, by 5.25 cents since last Wednesday. Contacts report that strong demand, tight inventories, and transportation issues are contributing to higher butter prices. Butter makers are running below capacity due to labor shortages and delayed deliveries of production supplies. Bulk butter overages range from 9 to 19 cents over the CME market price. Prices for: Western U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: +0.0900 - +0.1900 Information for the period January 17 - 21, 2022, issued weekly 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