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Butter: demand revives

May 15, 2020 11:54 AM, Der AUDITOR
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FRANKFURT/BRUSSELS. With exports resuming and restrictions being eased for the catering sector, demand and prices have revived throughout the EU.

Bulk butter trades higher

As demand is starting to revive in Germany bulk butter is trading higher again. With the easing of restrictions bulk butter sales caterers have revived. Bulk butter prices have also risen sharply in Poland. FranceAgriMer reports a similar development in France. After exports resumed two weeks ago, the market has received support. Retail demand is also driving up prices in France. Average EU butter prices ranged at EUR 2.81 per kg last week. Although slightly up, the price still ranges 4.5% lower than last month.

Butter

Location

Price

EXW Poland

EUR 2,850/mt

EXW Germany

EUR 2,800/mt

EEX

EUR 2,750/mt

GDT

USD 3,867/mt

Trade sources

 

EU exports rise by 37%

As the USDA reports, US butter sales are up too as the market is reopening. Inventories are being shifted into cold storage facilities for later uses. Data from the USDA and DG Agri shows that at USD 2,751 per tonne the average US butter prices ranged lower than in the EU (USD 3,162/t) and in Oceania (USD 3,938/t) last week. EU butter was, nevertheless, attractive for the US market in January to March as exports to the US are 17% on last year. By contrast, shipments to the UK have declined by 18% to 13,833 tonnes. Demand in China is on the rise as the country has stepped up butter and butteroil imports in January-March by 71% in terms of volume.

EU butter exports, in tonnes, Jan-Mar

Destination

2019

2020

Diff.

UK

16,802

13,833

-18%

USA

6,919

8,083

17%

Saudi Arabia

363

1,226

176%

Others

24,411

43,094

76%

Extra-EU27 total

48,495

66,236

37%

Eurostat

 

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