MD_DA440 Butter - Western U.S. Report 26 - Released on June 29, 2022 Contacts in the West say that cream is available this week as some production facilities are preparing for downtime during the upcoming holiday weekend. Stakeholders say that demand for cream has been strong from butter and ice cream makers in recent weeks and that they expect strong demand to remain present for loads shipping after the holiday. Butter production is steady, though some plant managers say that labor shortages are preventing them from running full schedules. Stakeholders say that tight spot availability is contributing to higher prices for butter, as market prices for butter have risen on the CME by 3 cents, since last Wednesday. Strong demand is present for bulk butter. Contacts say that the NASS Cold Storage report released on June 23, 2022, which showed that May inventories were down by 22 percent compared to 2021, has contributed to increased demand from purchasers of bulk butter. Food service demand is declining in the West; some restaurateurs say that rising costs and labor shortages are causing them to reduce their operating hours. Meanwhile, retail customers are reducing their purchasing of butter due to higher grocery store pricing. Prices for: Western U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: +0.0400 - +0.1600 Information for the period June 27 - July 1, 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