MD_DA440 Butter - Western U.S. Report 34 - Released on August 24, 2022 Declining milk production in the West is contributing to reduced cream production in the West. Meanwhile, demand for cream remains strong in the region from butter and ice cream makers. Cream availability is tightening in the region, and some stakeholders are, reportedly, paying premiums for additional loads. Some butter makers say they are running below capacity as they are unable to obtain sufficient cream volumes. Butter production is being further hampered by limited tanker availability and labor shortages at some facilities. Spot purchasers say butter inventories are tightening. The NASS Cold Storage report released on August 22 showed July butter inventories declined by 5 percent from June and were down by 21 percent when compared to July of 2021. Some contacts say this has contributed to more bullish market tones. Bulk butter sales are trending higher this week as some spot purchasers are concerned about butter availability in the coming months. Retail and food service demand for butter are unchanged this week. In the West, bulk butter overages range from 4.0 to 17.0 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: +0.0400 - +0.1700 Information for the period August 22 - 26, 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