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Butter futures down but SMP adds some support

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Staff Writer | Wednesday March 13, 2019 9:29AM ET
butter
Europe   Settled prices for butter contracts generally declined

Declines in the butter futures markets pushed the future milk value equivalent (FMPE) down in February, although SMP markets added some support, AHDB reported.


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Settled prices for butter contracts generally declined through February, with strong supplies in recent months and the upcoming flush likely weighing on the market.

The SMP market was more mixed, as prices dipped at the start of February and eased slightly at the end, but also rose notably through the middle.

The lifted weight of intervention stocks is likely still giving some support to the market, but strong supplies may be adding some uncertainty.

Overall SMP futures were up on the month in February, but the declines in butter outweighed this to push FMPE down.

On the EU wholesale markets, SMP prices continued their steady rise through the month.

Butter prices changed direction from up in January to a decline in February, but on a monthly average basis there was only marginal movement.

Therefore SMP price increases pushed the EU milk equivalent value (EU AMPE) for February up by 2% from January.

The forward market indicator (FMP) remained positive this month, though was lower than in January.

Although there is still a gap between the spot and futures markets, its reduction suggests markets have moved somewhat more in line with each other.

 

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