Lates News

In the past few years, with the continuous increase in demand for butter by Americans, the dairy industry has on one hand turned to breeding cows with higher milk fat content, and on the other hand expanded production facilities to meet market demand. However, it now appears that they may have been a bit too aggressive. Despite the still strong demand, seasonal production levels approaching historical peaks have raised concerns about an oversupply of butter in the market. The price of butter in the United States has fallen to the lowest level in over three years. On Monday, the butter futures prices on the Chicago Mercantile Exchange reached the lowest level since November 2021, and the milk futures prices used to make butter also experienced similar declines. Corey Geiger, chief dairy economist at Farm Credit Bank of America, stated that this is not a demand-side issue, it is clearly that we have supplied too much.