Butter accident pushes spot market further down

Prices of other dairy products, both on the physical market and on the futures market (which of course was the most), also plummeted.

In most cases, only for a day. Then came the correction, and the realization that perhaps there had been an overreaction. Partly due to the enormous tension that the high price level brings. But still, the entire market took a step down compared to a week ago.

The raw milk market took the biggest step down in relative terms. In the Netherlands the price dropped by 7,5%, in Germany even more.

Whether the butter panic was the only cause is difficult to say. According to traders, more milk suddenly appears to be coming onto the market due to a recovery of the supply in Germany and France, but there is no data yet that supports this. It is clear that the bluetongue effect of a few weeks ago in these countries is quickly over. Especially because of the colder weather.

The prices of cream and skimmed milk concentrate have also fallen, but less than those of raw milk and also less than butter.

The butter price in this week's DCA listing is ultimately 5% lower than last week. Several factors can be attributed to the price recovery in recent days. Firstly, there is the realisation that there is still a shortage of butter. This was also confirmed by the fact that only the butter price dropped sharply, and the cream price much less. Cream continued to find excellent sales at a slightly lower price than last week. Only the butter makers no longer found it so interesting to continue making butter, given the market. As a result, the supply of butter dried up further and the price rose again.

However, the entire dairy market did get a push down from the events on the butter market. The prices of milk powders also fell, of whey powders somewhat less. The cheese prices also lost ground, that of mozzarella the most.