MD_DA440 Butter - Western U.S. Report 21 - Released on May 25, 2022 The upcoming holiday is having an impact on cream demand and spot availability this week. Contacts report that some plants have been looking to sell additional loads of cream in preparation for a longer weekend, though some buyers are less inclined to purchase loads as they also have been looking towards the holiday. Stakeholders say that strong demand is present for loads that will ship after the holiday, as butter and ice cream makers will be running busy schedules to build inventories. Butter production is steady, though plant managers say that a shortage of labor is preventing them from running busier schedules. Spot loads of both salted and unsalted butter have tightened this week. Since last Wednesday, prices for butter have risen on the CME by 10.25 cents. The April NASS Cold Storage report released on May 23rd showed that inventories were 23 percent smaller than in April of last year. Demand for bulk butter is increasing; stakeholders say that some purchasers are looking for additional loads as they anticipate tighter availability in the fall and a continued increase in butter prices. Food service demand for butter is steady, though retail demand is soft. Bulk butter overages range from 5.0 - 15.0 cents above the CME market value. Prices for: Western U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: +0.0500 - +0.1500 Information for the period May 23 - 27, 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