Skip to content
800-884-8290

|

Client Login

|

Open an Account
  • About Us
  • Services
    • Futures & Options Brokerage
    • Organic Grain Swaps
    • Margin Management
    • Commodity Marketing Education
    • Consulting & Insurance
  • Research
    • Dairy
    • Livestock
    • Grain & Oilseeds
    • Ethanol & Biodiesel
  • Account
  • Quotes
  • Contact Us

U.S. Butterfat Imports Update – Oct ’14

  • October 31, 2014
  • by wbabler
According to USDA, total volumes of U.S. butterfat imports have increased throughout the past several months as domestic butter prices continue to remain significantly higher than international prices. The following charts provide a brief overview of trends within the U.S. butterfat import market. • U.S. butter prices have traded at a significant premium to Europe and Oceania butter prices in recent months. Sep ’14 U.S. butter prices continued to gain on Europe and Oceania butter prices when adjusted to 80% butterfat, resulting in the largest U.S. – international butter price premium in over ten years. Global Butter Prices - Oct • Over the past five years, over half of the total U.S. butterfat imports have come from New Zealand. Other major supplying regions include the EU-28, Australia and Mexico. Within the EU-28, U.S. butterfat imports have come primarily from Ireland, which accounted for over half of the total EU-28 imports throughout the past five years, followed by France, Denmark, the U.K. and Germany. • New Zealand has led all other countries in butterfat exports to the U.S. for each of the last 30 years, however Ireland has exported 45% more butter than New Zealand to the U.S. throughout the first eight months of 2014. 39% of 2014 YTD U.S. butterfat imports have come from Ireland through Aug ’14, with only 27% coming from New Zealand. US Butterfat Imports by Supplying Regions - Oct • The vast majority of butterfat imports come in the form of butter or anhydrous milkfat (AMF), with a small fraction coming in as dairy spreads and other miscellaneous butterfat products. US Butterfat Imports (Jan13-Aug14) - Oct • U.S. butterfat imports are regulated by a two-tiered tariff-rate quota system. A lower tier rate applies to imports up to a specific quantity (labeled low-tariff imports below) with higher tariff rates applying to imports above that volume (label over-quota imports below). As a percentage of total butterfat imports, over-quota imports have trended lower in recent years. US Butterfat Imports - Oct • Sep ’14 over-quota imports of butter and AMF were the highest monthly volumes since Dec ’12 and the second highest monthly volumes since Dec ’09. Sep ’14 volumes were five times larger than the average Jan – Aug ’14 volumes. Total Butter & AMF Over-Quota Imports - Oct • Sep ’14 over-quota imports of butter and AMF were the highest volumes for the month of August since 2005, reaching a nine year high. Aug Total Butter & AMF Over-Quota Imports - Oct • The monthly U.S. butterfat trade balance (exports – imports) reached near all-time highs prior to the recent significant run up in domestic butter prices. • The Aug ’14 U.S. butterfat trade balance reached a 20 month low, due to both a decrease in exports and an increase in imports. Aug ’14 U.S. butterfat exports reached a 20 month low while imports reached a 20 month high. • Domestic butter prices continued to increase throughout September, which is expected to result in a continued decline in the U.S. butter trade balance. Sep ’14 U.S. butter import figures will be released Tues, Nov 4th. US Butterfat Trade Balance vs Price Premium - Oct
U.S. Commercial Disappearance Update – Oct ’14
Global Dairy Trade Results Update – GDT Price Index Down 0.3% – 11/4/14
Dairy
Ethanol
Livestock
Grain

Recent Dairy Research

  • Food Service Sales Update – Dec ’22
  • Global Dairy Trade Update 11-15-22
  • Dairy Products Production – Jul ’29
  • USDA Semi-Annual EU Dairy Production Report
  • U.S. Dairy Cold Storage Update – May ’22
Atten Babler Commodities LLC
11406 US Route 20 W
Galena, IL 61036
800-884-8290
Privacy Policy
Futures, options and swaps brokerage is provided through Atten Babler Commodities LLC. The risk of loss in trading commodity futures and options and swaps is substantial. Swaps trading should only be undertaken by investors who are Eligible Contract Participants (ECPs) within the meaning of Section 1a(18) of the Commodity Exchange Act. Before trading, you should carefully consider your financial position to determine if futures, options or swaps trading is appropriate. When trading futures, options or swaps, it is possible to lose more than the full value of your account. All funds committed should be risk capital. Past performance is not necessarily indicative of future results. Atten Babler Commodities LLC use sources that they believe to be reliable, but they cannot warrant the accuracy of any of the data included in this site. Opinions and market data are subject to change at any time. Unless otherwise stated the information contained herein is meant for informational purposes only and is not a solicitation to buy futures or options or swaps.
© Copyright 2023 Atten Babler Commodities LLC