MD_DA440 Butter - Western U.S. Report 29 - Released on July 20, 2022 Cream inventories are tightening in the West as higher temperatures in parts of the region are contributing to reduced milk output and lighter cream production. Contacts report strong demand is present from butter and ice cream makers. Butter makers are running busy schedules, though some plant managers say labor shortages are preventing them from running full schedules. Retail demand for butter is steady to lower; high grocery store prices are, reportedly, causing some store customers to reduce their consumption or switch to butter alternatives. Food service demand is steady, but below some stakeholders' expectations. Bulk butter demand remains strong as stakeholders are wary of tight inventories later in the year. Market prices for butter have been mixed throughout the last week, oscillating within the low to mid $2.90s. Bulk butter overages range from 2.0 to 15.0 cents above the CME market value, in the West. Prices for: Western U.S., All First Sales, F.O.B., Grade AA, Conventional, and Edible Butter Bulk Basis Pricing - 80% Butterfat $/LB: +0.0200 - +0.1500 Information for the period July 18 - 22, 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