The price for AA butter on CME fell to a new five-year low this past week as demand for cream and butter has imploded across food service channels. Markets remain in a bearish corrective phase with the COVID-19 pandemic gripping the world’s economies.
This crisis coincides with the annual springtime flush, which normally brings peak milk output and an abundance of cream struggling to find a home.
While it’s true that families are doing more cooking and even baking at home, clearly the grocery/retail segment has been unable to pick up the slack left from restaurant closures and absent demand across the food service industry.
Prices this past week collapsed through the $1.50 per lb, a major psychological level of support and a blow to producers facing an oversupply of cream.
CME butter futures & volume
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