MD_DA440 Butter - Western U.S. Report 26 - Released on June 30, 2021 Despite the high temperatures in the West, cream supplies are steady. However, most cream is staying relatively local as tanker shortages continue to curtail further movement. Because of this week’s record-setting heat, some butter makers are running shortened production schedules. Inventories are fairly stable. Some contacts note tighter unsalted butter availability on the spot market, although salted butter remains widely available. Retail orders are seasonally soft but steady. Food service demand is strong but leveling off for now. However, a handful of full service outlets have not returned to pre-pandemic levels of operation yet. Some contacts expect that the food service sector may continue to see modest bumps in demand as these remaining outlets continue to increase service and return to full operation levels. Bulk butter overages are unchanged from last week. Prices for: Western U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: +0.0150 - +0.0750 Information for the period June 28 - July 2, 2021, issued weekly Secondary Sourced Information: CME CLOSING PRICE The Grade AA butter price at the CME Group on Wednesday closed at $1.7400, compared to the weekly average price of $1.7395 from last week. Published by: Dairy Market News - Madison, WI CHELSEA ROCHELLE, 608-422-8594 Email: Chelsea.Rochelle@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