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Dairy
Butter
21
In August, EU butter prices declined to a three-month low. Although some buyers are looking to secure deals for
longer contracts, spot market demand was seasonally low, when summer began. The August average price of EU
butter was EUR 6,978/MT, slightly up 1.1% m-o-m and significantly up 76.5% y-o-y.
As with other dairy commodities from New Zealand, butter prices dropped to an eight-month low during August,
attributed to low demand from Asian markets. Therefore, the August average price of New Zealand butter declined
to USD 5,369/MT, significantly down 10% m-o-m, but up 9.6% y-o-y.
Butter NZ - USD/MT
Aug 20 Nov 20 Feb 21 May 21 Aug 21 Nov 21 Feb 22 May 22 Aug 22
3,000
4,000
5,000
6,000
7,000
1X11 - Butter auction fas NZ/AU
US butter prices dropped slightly in August, due to higher y-o-y butter production and lower-than-expected
consumption, since consumers have started feeling the strain of high prices and rising inflation, thereby impacting
demand in both foodservice and retail sectors. In July, US butter output was 151.8 million pounds, up 3.1% y-o-y.
As a result, the average CME US butter spot prices slid to USD 2.62/lbs in August, down 2.3% m-o-m, but up
51.6% y-o-y.
The August average of the Mintec Benchmark Prices for unsalted butter EXW UK eased to GBP 5,915/MT, down
0.8% m-o-m, but up 82.4% y-o-y. Most buyers were adequately covered ahead of the summer, thus seasonal thin
butter volumes were traded during August. Due to lower butter returns, market sources reported milk processors
selling cream directly instead of producing butter, and channelled milk to cheese production.
Butter UK - GBP/MT
Aug 20 Nov 20 Feb 21 May 21 Aug 21 Nov 21 Feb 22 May 22 Aug 22
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
LZ01 - Butter unsalted 82% exw UK (MBP)
Butter EU - EUR/MT
Aug 20 Nov 20 Feb 21 May 21 Aug 21 Nov 21 Feb 22 May 22 Aug 22
2,500
3,000
3,500
4,000
4,500
5,000
5,500
6,000
6,500
7,000
7,500
8,000
J116 - Butter unsalted exw EU (MBP)
Butter US - USD/lbs
Aug 20 Nov 20 Feb 21 May 21 Aug 21 Nov 21 Feb 22 May 22 Aug 22
1
1
1
2
2
2
2
2
3
3
3
SDBN - Butter grade AA CME US (DH-0)