MD_DA104

     Butter/Butteroil - Europe

     Report 7 - Released on February 18, 2021


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

     With less than two months until spring holiday celebrations begin, domestic buyers are
     beginning to place new butter orders. Heavier ordering is expected to continue in coming
     weeks. Recent weather-related slowing of seasonal milk production increases has made cream a
     little harder to get. Recent expectations of strengthening butter prices have hastened
     contracting activity. In turn, that increases interest from other buyers in securing
     commitments. This fuels the upward spiral of expectations resulting in actions that
     contribute to the expectations being realized: firming prices.

     There is more price uncertainty for contracts after April, which has slowed contracting
     beyond then. Deals for butter through April find sellers and buyers in reasonable price
     agreement. After April, both sides are more comfortable in assessing the situation and not
     getting 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