Report 37 – Released on September 10, 2020

Butter prices in Western Europe are higher. Within countries, the highest prices are found in Germany, followed by Netherlands, Italy and France. Butter oil prices are steady to slightly lower.

While packaged butter demand is classified as generally stable, the perceived high price of cream has resulted in less butter churning. That is lifting prices. The same situation prevails as to bulk butter. Less bulk butter is being made due to cream prices. That has increased butter prices for buyers who want butter in the near term. Many holders of butter in cold storage are only too happy to sell at higher current prices, often above the price basis of the stored butter.

Contracting for new butter production is slow because buyers are resistant to making longer term commitments to current pricing. Some buyers say they expect lower butter prices by late October, continuing lower into early 2021. That expectation is keeping these buyers cautious until some seller price concessions evolve.

     Western Europe, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          3,975 - 4,175


     Western Europe, 99% Butterfat, Free on Board - Port Butteroil
     Price Range - $/MT:                          4,925 - 5,025


     Information for the period August 31 -  September 11, 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