There was an inevitable correction in the EU butter market in the past week, with a large fall in EEX futures of 8-12% for Nov-24 to Feb-25 contracts between Thursday and Tuesday. That was followed by a partial recovery of as much as a third of those losses (for the Jan-25 contract) overnight Wednesday. The timing is early for this to be following the distinct seasonal trend in cream pricing, although spot milk prices have eased slightly and there was an uptick in the German milk collections curve.
Buyer pushback seems to be the most obvious reason for this price action, and consumers have yet to be truly tested at these elevated prices. While it is early to conclude this is the new direction for the butter market, there are bound to be influences from rising milk collections and cool weather slowing cream demand.
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