Report 21 – Released on May 21, 2020

Western European butter prices moved higher. Butter oil prices are steady to higher. Easingof COVID-19 restrictions in some EU countries, May religious holidays, and asparagus season all combined to spur demand for packaged butter.

Bulk butter demand has also increased through Q2 and Q3. Industrial customers are expanding production of products using butter. Q2 production is increasingly committed. Q3 contracts are under active discussion but are slower to close because sellers and buyers have different pricing expectations.

Applications for Private Storage Aid (PSA) for butter during the second week of the current program, May 11 – 17, 2020, totaled 8,989 MT according to Eucolait. The total amount of butter in PSA is 24,332 MT.

     Western Europe, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          2,425 - 2,750


     Western Europe, 99% Butterfat, Free on Board - Port Butteroil
     Price Range - $/MT:                          3,100 - 4,150


     Information for the period May 11 - 22, 2020, issued biweekly

Secondary Sourced Information:

Butter production in the EU increased 2.2 percent January – March 2020 compared with January – March 2019 according to Eurostat. March 2020 butter production increased 5.1 percent YOY. Butter production percent changes in some countries YTD and YOY include Germany, +0.9, +3.7 percent; France, +4.8, +8.8 percent; Italy, +0.2. -0.3; Netherlands,-5.4, -7.1; and Ireland, -1.0, +2.7.

January – March 2020 butter exports from the EU, 68,000 MT, increased 70.5 percent YTD according to CLAL data made available to USDA.