We’re in a time when consumers will eat more butter than at any other time of the year. Most of it will be consumed as cookies, cakes, pies and other baked goods as we celebrate the holiday season. While butter sellers have had the leverage this year, we currently find ourselves in a tenuous time for all companies involved in the global butter market.
CME Butter, after rallying for five straight weeks and hitting an all-time high of $3.5025 per pound on Oct. 6, finally began to show weakness last week. It closed at $3.3975 on Thursday, Oct. 19. Reports indicate demand for butter is slowing, and cream multiples are peaking.