As Butter Continues to Rise, Keep Perspective
Butter markets finished reclaiming the losses that were experienced late last week and rose to a new high in the move that began in early May.
At the end of the day, butter finished 7 cents higher at a final price of $2.58. Good news for those following the ongoing strong global butter fat market. It would be even better news for the United States dairymen if butter sales from this country to foreign buyers accounted for a greater share of our total net export activity.
In fact, in the last two years the United States has been a net importer of butter. Looking back further to a time when the United States did export butter at a level greater than it imported, it becomes plain that the United States was never really an exporter of butter fat. Traditionally, we spend more time in the protein categories. From top to bottom, the product rank by value shows cheese as the number one export category followed by skim milk powder, then whey products, and finally lactose.
Volume of all products including butter are so small that they are lumped together in category called other dairy products and collectively account for less than the second ranked skim milked powder. Yet hope remains that a falling dollar value and rising world market place can turn this opportunity around.
Elsewhere in spot trade all other products remain unchanged. Class III milk finished 5 cents higher in the second half of the year. Class IV markets followed suit.