Dairy
Butter
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
Dec 19 Mar 20 Jun 20 Sep 21 Dec 21
Butter EU - EUR/MT
Sep 20 Dec 20 Mar 21 Jun 21
JS95 - Butter 82% fat exp fob W Eur
The EU butter price growth slowed in December, when demand pressure eased. Most buyers
anticipated purchases in November ahead of the peak season demand, during winter. Also, rising
cream prices supported butter prices. The December average price of EU butter was EUR 5,436/MT,
up 1.8% m-o-m, and significantly up 64.5% y-o-y.
New Zealand butter prices are firm, attributed to a lower-than-expected milk supply during the peak
season. The USDA lowered its expectations of New Zealand cheese production in 2022 to 385,000
tonnes, down 1.5% y-o-y (-5,000 tonnes). Industry contacts suggest steady butter export sales also
contributed to a bullish market sentiment for butter. The December average price of New Zealand
butter rose to NZD 8,172/MT, up 4.2% m-o-m, and up 46.7% y-o-y.
4,500
5,300
6,100
6,900
7,700
8,500
Dec 19 Mar 20 Jun 20 Jun 21 Sep 21 Dec 21
Butter NZ - NZD/MT
Sep 20 Dec 20 Mar 21
1X11 - Butter auction fas NZ/AU
2,500
3,000
3,500
4,000
4,500
5,000
Dec 19 Mar 20 Jun 20 Sep 21 Dec 21
Butter US - USD/MT
Sep 20 Dec 20 Mar 21 Jun 21
DU22 - Butter grade AA USDA cash
US butter prices remained firm in December. Butter production declined by 9.6% y-o-y in November,
bringing the total butter production down by 2.2% y-o-y during Jan-Nov '21. Consumption ahead of
the festive period outpaced production, resulting in butter inventories decreasing for a fifth
consecutive month in November. This resulted in upward pressure on US butter prices. Thus, the
average price of US butter reached USD 4,718/MT in November, up 8.5% m-o-m, and up 44.7% y-oy.
The December average of the Mintec Benchmark Prices for unsalted butter EXW UK rose slightly to
GBP 4,396/MT, up 0.4% m-o-m, and up 46.6% y-o-y. Tight supplies and seasonal demand from
bakery industry during a cold December drove further butter prices in the UK. Also, market
participants note that increased energy and labour costs within the UK supported prices in
December.
2,300
2,700
3,100
3,500
3,900
4,300
4,700
Dec 19 Mar 20 Jun 20 Jun 21 Sep 21 Dec 21
Butter UK - GBP/MT
Sep 20 Dec 20 Mar 21
LZ01 - Butter unsalted 82% exw UK (MBP)
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