Dairy Market News is reporting cream prices are high. Ordinarily, cream is sold in multiples of the CME butter price. The brokers I have spoken with say it is in the 1.5 to 1.6 range.
There are several reasons for cream to be short, including butter exports. However, butter fat test in all the federal orders are lower this year. Protein is also slightly lower.
Probably, the biggest depressor of BF is shortage of energy - grain. So, is there something really wrong with the milk production numbers?