Butter prices in Western Europe increased at the low end of the price range but are steady at the top. Current US$/MT pricing, 4,625-4,750 is well below the exceptionally high prices one year ago, 6,225-7,175. Butteroil prices are steady to slightly lower.
Most commercial buyers are covered with butter stocks. Contracts are being filled in a timely way. Buyers with spot interest can find butter to buy although there is little such spot market activity. Contracting for the second half of the year is being worked on. Finalizing contract discussions is a bit of a sticky wicket due to uncertainty as to pricing.
Buyers and sellers are motivated to finalize arrangements, but also a bit conflicted about pricing. This arises from uncertainty about second half milk production and resulting cream availability. Most parties expect an increase in milk production above last year, but the uncertainty is the magnitude. Momentum moves ahead as the parties closest together get deals done and parties still negotiating become more inclined to follow the trends.
Western Europe, 82% Butterfat, Free on Board - Port Butter
Price Range - $/MT: 4,625 - 4,750
Western Europe, 99% Butterfat, Free on Board - Port Butteroil
Price Range - $/MT: 5,900 - 6,150
Secondary Sourced Information: Production of butter in the EU January-February, 2019, 1,505,000 MT, decreased 0.5 percent from the first two months last year according to CLAL data provided to USDA.
EU butter exports January-February 2019, 26,000 MT, decreased 21.1 percent from January- February 2018 according to CLAL data provided to USDA.
EU BUTTER EXPORTS ± TOP 3 DESTINATIONS
Percent change January-February 2019/2018
DESTINATION MT PERCENT CHANGE
United States 5,337 +23
Saudi Arabia 1,960 -45
China 1,586 +3
Dairy Market News - Madison, WI
Eric Graf, 608.422.8590
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