MD_DA440 Butter - Western U.S. Report 31 - Released on August 03, 2022 In the West high temperatures are contributing to lighter milk output and reduced components in farm milk. Cream availability is tightening, but spot purchasers say volumes are easier to obtain in some parts of the region. Demand for cream is strong throughout the region. Butter makers say scheduled maintenance, labor shortages, and high temperatures are contributing to reduced butter production. Retail and food service demand for butter are steady to lower. Meanwhile, bulk butter demand is strong. Some contacts say concerns of tight inventories at the end of the year are contributing to increased demand. Market prices for butter were $3.06 on the CME, as of reporting. This is the highest price for butter on the CME since September of 2015. Some say wariness of tight inventories may support current market prices, while others are concerned that prices may contribute to further decreases in demand. In the West, bulk butter overages range from 2.0 to 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: +0.0200 - +0.1500 Information for the period August 1 - 5, 2022, issued weekly Secondary Sourced Information: CME GROUP MONTHLY AVERAGES The CME Group July monthly average price for Grade AA butter was $2.9506, compared to $2.9546 a month ago. 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