The market sentiment for EU unsalted butter was reported bullish during the week, with prices across the EU increasing compared to the week prior. Price drivers remain largely unchanged compared to the previous week. Demand was reported stable while sellers are unwilling to move product; even though butter stock is reported elevated compared to the year prior, producers are happy to move the product later in the year. This bullish sentiment is supported by milk supply uncertainties in France and Ireland, according to key market players in the butter market, especially in the retail market. While market participants anticipate that prices will increase slightly in the coming week, market sources stated that it remains too early to indicate if this will result in a continuous bullish sentiment or if this is only a market correction which turns into neutral sentiment. Uncertainty remains among market players as the market looks for direction. For reference, the assessment for Unsalted Butter EXW European Union [Mintec Code: J116] was made at €4,700/mt, up €125/mt w-o-w.
The UK butter market sentiment was reported mixed during the week, with prices trading around the previous week’s level. However, activity remained limited. While supply is still strong, demand has been reported weaker. Willingness to move larger volumes remains low. While processors are reportedly not in a rush to move products, buyers are not currently active in the market, leaving the market in a ‘wait-and-see' approach from both sides.
One market source stated, “we still need to catch up with some of the retail butter production, this leads us to a comfortable position. We have no need to sell the volumes.”
The MBP for Butter Unsalted 82% EXW United Kingdom [Mintec Code: LZ01] was last assessed at £3,975/mt on 18th May, up £25/mt compared to the previous week.