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

Source: DTN
Posted by: Information Services
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