Butter futures took another trip south today spurred by dairy activity around the globe. Butter futures for September delivery are down $0.015 cents today currently trading at $0.236 per pound at the Chicago Board of Trade.
While European dairy activity “appears” optimistic, the latest in a series of dismal GlobalDairyTrade actions in New Zealand suggests dairy prices are heading lower with butter futures leading the way. Although whole milk powder rose nearly 2% recently, the products that are made with it have seen losses.
Kevin Craney, Director of Managed Futures at RJO Futures in Chicago, shared his fundamental view of the butter futures market by stating, “The butter (futures) market was believed to be strong because of the strength of the European market and the reasonable demand for butter and cheese.” Craney adds, “In other areas of the world, such as on the Asian continent, the weak demand is helping to shift prices lower.”
The trend for butter futures has been sideways to down at best since a significant rally in mid-June. What butter futures prices are doing to the dairy farmer may be a boon to us consumers.
ALL COMMENTARY IS CONSIDERED OPINION & VIEWS FROM THE AUTHOR AND NOT A SOLICITATION OF ANY SECURITIES. THE RISK OF LOSS IN TRADING COMMODITY INTERESTS CAN BE SUBSTANTIAL. YOU SHOULD THEREFORE CONSIDER WHETHER SUCH TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.
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