Report 7 – Released on February 18, 2021

Both ends of the Western European butter price range moved higher. Current pricing of creamcarries into higher butter pricing. Butteroil prices also increased.

With less than two months until spring holiday celebrations begin, domestic buyers arebeginning to place new butter orders. Heavier ordering is expected to continue in comingweeks. Recent weather-related slowing of seasonal milk production increases has made cream alittle harder to get. Recent expectations of strengthening butter prices have hastenedcontracting activity. In turn, that increases interest from other buyers in securingcommitments. This fuels the upward spiral of expectations resulting in actions thatcontribute to the expectations being realized: firming prices.

There is more price uncertainty for contracts after April, which has slowed contractingbeyond then. Deals for butter through April find sellers and buyers in reasonable priceagreement. After April, both sides are more comfortable in assessing the situation and notgetting too committed right now.

 Western Europe, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          4,275 - 4,475


  Western Europe, 99% Butterfat, Free on Board - Port Butteroil
     Price Range - $/MT:                          4,800 - 5,225

Information for the period February 8 – 19, 2021, 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