Has the Butter Bubble Burst?
The consumer love affair for butter continues, but it looks like global prices for butter, including here in the U.S., appear to be on a downward slide.
According to a report on Agrimoney, butter prices fell to a three-month low on the EU cash market and also fell on the EU commodity exchange market, leading some to believe that the price rally that saw record high prices is over. Contract prices are down 23% from a September high.
EU butter prices are higher than anywhere else on the world market, so perhaps this is just a right-sizing move.
In the U.S., butter prices have dropped 4.8% in October, but are still 22% over October 2016 prices.
The Agrimoney report says that the higher prices have been reflected in export sales, with butter exports dropping 17.2% in the first eight months of 2017.
Looking ahead into 2018, USDA projects flat output of butter production in the EU and New Zealand, the two largest butter exporting countries.