Report 3 – Released on January 16, 2020

Butter prices are higher. The highest prices are in France, followed by Germany, Belgium,and Netherlands. Manufacturers would like to see prices move higher. The Dairy Market News 2019 monthly average prices began January 2019 at $5,060 but declined to $3,924 by August. Current butter oil prices are mixed.

There is an active spot butter market, helping to move prices. Some observers believe the unusually active spot butter market results from buyers who had delayed seeking butter until after the new year began, hoping for lower prices. The opposite outcome occurred. Orders for packaged butter in Western Europe increased following the end of the 2019 holiday season. Order processing keeps butter manufacturers busy. The current demand is considered very good for early January in historic terms.

Bulk butter demand is also strong. This demand is particularly driven by traders, more so than end users. Export interest is slow to pick up in 2020 so far. Some observers believe that older inventories of butter were drawn down quite a bit toward the end of 2019. Most current deliveries are from current production.

Western Europe, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          3,950 - 4,200


     Western Europe, 99% Butterfat, Free on Board - Port Butteroil
     Price Range - $/MT:                          4,850 - 5,325


     Information for the period January 6 - 17, 2020, issued biweekly
     Published by:
     Dairy Market News - Madison, WI
     Eric Graf, 608.422.8590
     Email: Eric.Graf@usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov