Report 25 – Released on June 18, 2020

Western European FOB port butter prices are higher. This is also true for retail prices of packaged butter, both store brand and private label, with sales demand described as active.

Block butter markets are quieter. Butter oil prices are mixed.Existing contracts are being filled, keeping churning schedules active. Few new butter contracts are currently being executed, because buyers and sellers have differing price expectations. Manufacturers assert having little flexibility due to higher cream prices. The higher cream prices have made some existing contracts less profitable. Buyers are comfortable with waiting. Some manufacturers are also satisfied to wait, noting that Western European production typically declines at the end of June anyway, which they believe will help maintain or increase pricing. For now, many manufacturers and buyers just can’t reach accord to move ahead with new bulk butter contracts. Export interest remains high, with increasing interest from buyers seeking the relatively lower Western European pricing as a preference to Oceania pricing and lower end of season supplies.

Applications for Private Storage Aid (PSA) for butter during the last reported week of the current program, June 8 – June 14, 2020, totaled 6,755 MT according to Eucolait. The total amount of butter in PSA is 50,213 MT. The top countries with butter in PSA are Netherlands,Ireland, and Germany.

Western Europe, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          2,700 - 2,950


     Western Europe, 99% Butterfat, Free on Board - Port Butteroil
     Price Range - $/MT:                          3,225 - 3,700


     Information for the period June 8 - 19, 2020, issued biweekly

Secondary Sourced Information:

EU butter production January – April 2020 increased 0.3 percent from January –April 2019,according to CLAL data provided to USDA.

January – April 2020 butter and other fats exports from the EU, 92,000 MT, increased 61.6 percent YTD according to CLAL data made available to USDA. Top importers, quantity imported,and percent change from the same period in 2019 include United States, 13,716 MT, +27.5 percent; Saudi Arabia, 9,910 MT, +128 percent; and Morocco, 5,437 MT, +346 percent.

     Published by:
     Dairy Market News - Madison, WI
     Eric Graf, 608.422.8590
     Email: Eric.Graf@usda.gov

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