Report 51 – Released on December 22, 2021

The Western European butter price range moved higher to end 2021. There was morestrengthening at the top of the range than the low end, reflecting buyers paying more tocomplete deals with their preferred sources. Another current price driver is very high creamprices. The current price range is the highest of 2021. Butteroil prices are up at the lowend but slightly down at the top. The low-end price is the highest of 2021. The upper rangeprice is 2021’s highest with the sole exception of the last reporting period.

Butter makers in Germany believe the data for 2021, when final, will establish that annualbutter production declined to a multiyear low. With 2021 butter imports expected to be closeto steady, the dynamics affecting pricing become clearer.

Packaged butter deliveries have slowed since the mid-December peak, which is typical. Bulkbutter sales have been strong into early this week. These are mostly sales to cover needsfor early 2022. Buyers are not resisting price quotations very strongly. Getting commitmentsseems to be important for buyers. Sales are expected to slow now, into early 2022.

  Western Europe, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          6,075 - 6,675


     Western Europe, 99% Butterfat, Free on Board - Port Butteroil
     Price Range - $/MT:                          6,125 - 7,850

Information for the period December 13 – 24, 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