The sharp correction in the European butter market continued this week, with strong milk production growth and a counter-seasonal decline in spot milk prices.

Cream multiples are at their lowest on record for this time of the year, and spot cream is cheaper than butter which is unusual for September. EEX butter futures for Q1-26 delivery are now trading at below the €5,700/t mark. With weaker fat market values, European cheese prices are also trending lower, with Gouda at a mid-point of €3,650/t. Mozzarella is quoted at €3,500/t (or US$1.86/lb), roughly a 20c/lb premium relative to the US spot market.