The butter fairy-tale in Europe continues to march on with spot prices for butter increasing further in the last week. Spot prices have now moved above €6,000/t as supplies remain extremely tight across the continent.

And judging by the European futures market for butter (EEX) there is an expectation within the market that prices could move ever higher in the third quarter of the year with contracts completed for €6,200/t.

In New Zealand, the outlook for whole milk powder (WMP) has been more subdued in light of last week’s GDT event where WMP prices declined more than 3% to just over $3,020/t. The result has seen market sentiment weaken with the price of futures contracts for WMP declining more than 2% in the last week.

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What is happening in Europe’s butter market

Dairy Markets: GDT falls as US milk supply hits record levels