NATIONAL: Cream is available in the Central and West regions; some contacts in the West report sending cream to other regions to support local production demand. In the East, strong demand for cream from Class II manufacturers is limiting availability for butter makers. Labor shortages in the Central and West regions are causing some butter makers to run below capacity. Butter inventories have declined in the East in recent weeks, due to strong retail demand and limited production.

WEST: Cream inventories are steady, with enough available to meet regional production needs. Demand for cream is strong. Some purchasers in other regions with less cream availability are, reportedly, looking for loads of cream in the West. Cream loads are reportedly facing delays due to a shortage of truck drivers. Domestic butter demand is steady to higher in both retail and foodservice markets. Contacts report that export demand for butter is strong. Spot butter inventories are tight, though unsalted inventories are noted to be much harder to find than salted. Butter producers are running below capacity. Some plant managers say that delays to production supplies and a shortage of labor are contributing to shortened schedules.

CENTRAL: Central butter makers report post-Thanksgiving cream availability remains somewhat hearty in the region and from the West. Still, freight options from western cream sources are noted as limited with few signs that the situation is going to level out in the near future. Butter demand is seasonally strong, and now that cream has become more available, churning is more active. Bulk butter inventories, however, are very tight. Salted and unsalted bulk butterinterest is potent. Butter market tones have undergone some bullish pressure, as they begin to edge nearer to the $2.10 mark

NORTHEAST: Manufacturers’ in-house cream supply is adequate for satisfying the eastern butter market holiday demand, as cream multiples for regional f.o.b. spot loads lounge in the mid to upper 1.40s. A few manufacturers will conclude their holiday butter orders this week. Churning schedules to replenish stocks for 2022 Q1 butter needs are in place. Butter output is expected to increase from higher volumes of milk moving into Class IV and the wind-up of the yearend holiday sale season. Butter production output during October 2021, is 1.9 percent lower than the previous year. Retail holiday butter sales are down compared to last year.