Demand for butter has been strong in the United States, and that clearly is the case around the world as well. Last week, butter prices reached a record high $3.25 on the Global Dairy Trade (GDT) auction, up 6.2% from the previous trading event.

In the United States, butter prices remain over $3 per pound on the CME. Although prices don’t rival the records set before the holiday season last fall, they remain at levels not typically experienced in the spring or summer. The CME butter price was over $3 for most of the days in May and June, and the futures prices stay at or above $3 per pound until late this year.

The Global Dairy Trade Index, founded in 2008, tracks the average price movement of dairy products in international trade. It is calculated based on the results of Global Dairy Trade Auctions. These auctions include an array of dairy products, such as butter, cheese, and milk powder, and they take place twice a month.

The overall Global Dairy Trade Price Index was down 0.5% following the June 18 auction. The biggest price drops included whole milk powder, which fell 2.5%; anhydrous milkfat, down 1.2%; and Cheddar cheese, down 1%. Besides butter, lactose and skim milk powder saw positive movement. The next auction will take place on July 2.

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(c) Hoard's Dairyman Intel 2024
June 24, 2024
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