NATIONAL: Plenty of cream was available coming out of the holiday. Some contacts expect there may be increasing tightness in the coming weeks. Butter output varies across and within regions; some plant managers report seasonally decreased production, while others are maintaining more active schedules to stock up now for fall orders. Retail demand remains soft. Foodservice orders are strong and continue to grow. Some contacts have reported a decrease in export interest for 82% milkfat butter. This week, bulk butter prices range from 1.0 to 8.0 cents above market across the country.

WEST: Cream is widely available. Movement out of the West and into other regions is somewhat limited by tanker availability. Butter production varies; some manufacturers have reduced production seasonally, while others are working through steady cream supplies to build bulk butter stocks for fall demand. Inventories are available for contract and spot needs. Retail sales are lackluster and have dropped below pre-pandemic levels. Foodservice demand continues to strengthen.

Some contacts anticipate demand will keep growing as more foodservice outlets return to full operating capacity in the coming weeks and months.

CENTRAL: Some butter producers relay demand tones and estimates which are similar to pre-pandemic levels. Although foodservice has leveled off from the pipeline replenishment earlier in the spring, sales are well above last year at this time overall. Cream is available for Midwestern churners, but plant managers say they are finding it from other areas and regions, primarily the western region. Ice cream manufacturers have recently taken on lighter amounts of cream than expected, therefore more is available for churning. Regarding churning, butter production remains somewhat steady as producers work toward expected fall demand increases. Butter market tones are quietly steady.

NORTHEAST: Butter markets are relatively flat. East butter productions are running through steady to slightly shorter schedules at this time. Market participants note a few operations have halted butter output for a couple of weeks. Cream supplies are available in the East region. Retail sales are unchanged from weaker undertones. Foodservice sales are stable for the near term. The bulk butter price for domestic sales, in the East, is reported 3 – 8 cents over the CME market.