BUTTER HIGHLIGHTS: Class II cream demand is diverting increasing cream volumes away from butter churning operations across the country. Churning is still active, and different Q1 marketing strategies have manufacturers’ inventories varying widely. Some butter manufacturers find their inventories are close to zero because they employed aggressive make and sell marketing strategies. Other manufacturers followed make and hold tactics, and currently have substantial butter inventories. One strategy may provide challenges for meeting mid to late summer butter commitments, while the other may lead to near to mid-term asset value risk, according to market participants. Price increases Monday through Thursday, built upon sales and unfilled bids at the CME, garnered a weekly total gain of 4.75 cents.