Report 23 – Released on June 04, 2020

Western European butter prices are higher. Prices vary within Western Europe. Germany records the highest prices, followed by Italy, Netherlands and France. Butter oil prices are slightly lower. Sources attribute butter oil prices to lower current export interest.

There is high demand for Western European packaged butter. In Germany over the last two weeks, religious holidays coincided with easing COVID-19 restrictions, allowing opening of many restaurants. This encouraged a surge of people going out to eat. One observer described this as necessitating the refilling of stocks in the warehouses of gastronomy. Butter,among other dairy products, benefited from this heightened demand. More butter has recently been moving from Ireland to Germany than is typical. This has helped satisfy the recently higher demand in Germany.

Bulk butter demand for the near term is also strong. Recently higher prices have tempered bulk butter contracting for later in 2020. Buyers hope for a relaxation in prices before committing.

Applications for Private Storage Aid (PSA) for butter during the fourth week of the current program, May 25 – 31, 2020, totaled 5,784 MT according to Eucolait. Applications have decreased week by week during each of the four weeks. The total amount of butter in PSA is 36,819 MT.

 Western Europe, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          2,500 - 2,875


     Western Europe, 99% Butterfat, Free on Board - Port Butteroil
     Price Range - $/MT:                          3,075 - 3,975

Information for the period May 25 – June 5, 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