US butter prices remained firm in October 2021

November 2, 2021

1 mins read

US butter prices remained firm in October. The October average price marginally declined by 0.5% m-o-m to reach USD 3,886/MT. Overall, the US butter prices have strengthened since last August, up by 5.2% due to the combination of lower butter supplies and higher domestic and international demand.

US butter production declined by 1.7% m-o-m in August, bringing the butter production for the January-August period to 1.42 billion pounds, down by 2% y-o-y. Butter production is trending downward, as expected, with downtime due to difficulties finding cream for butter making and labour shortages. Milk processors are channelling more milk to cheese vats, driven by the additional capacity that has recently come online.

Moreover, US butter inventories fell slightly. The US butter drawdown season started early this year, with stocks falling by a larger-than-typical margin in July and August. There were 367 million pounds in cold storage at the end of August, nearly 30 million pounds less m-o-m, and a decline of 1.2% y-o-y. However, butter inventories remain ample and are available for near term commitments. In addition, the US butter domestic consumption is forecast to grow by 1.7% y-o-y in 2021, driven by foodservice sales, which held up relatively well during the Delta variant wave, while retail demand was weaker. Also, ample US butter inventories and a prolonged period of US butter price competitiveness in the global markets have boosted US butter export sales, which skyrocketed by 116% y-o-y during January-August.

 

 

 

 

 

 

 

 

 

Topics: Dairy & Eggs
Jose Saiz
Jose Saiz

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