Butter demand is reported to be excellent, and demand outpaces production, but butter moving out of stocks is keeping a lid on prices. Butter promotionals eased off because prices had climbed to the consumer resistance point. At the end of this holiday season, butter stocks will be at the lowest levels in years. Still, manufacturers worry that not enough churning capacity exists to meet the demand they feel is there. Cream demand is strong.
Cheese demand is weak.
The decline in prices is expected to bring the market back into balance.