BUTTER HIGHLIGHTS: A combination of three factors: butter prices declining this week to levels last present during mid-July, cream offerings being heavy and expected to increase, and butterfat tests since July substantially above the last few years, all lead to one result - surplus cream. Cream supplies exceed demand. The surplus is expected to increase with coming holidays. The only real/viable outlet for the surplus cream will be the churn. This leads to a complex situation where manufacturers are averse to building inventories concurrent with downward index prices and retail butter orders are dropping as the window for shipping and stocking store shelves before holiday shopping closes.