◂ Event Timeline

Aug 31, 2018WEATHEREurope

August market report: Butter might be the bright spot—again

Cream and butter are in short supply in Europe after a prolonged heat wave and a poor season. Cream multiples in early August were stronger than in recent years.

The author expects demand to stay strong for several weeks.

WHY IT MATTERS

A European butterfat shortage tightens global dairy supply and supports butter and cream prices. This tends to lift US milk values through export demand, while the heat-driven shortfall may also affect feed availability in Europe.

AFFECTSMilk (Class III)▲

SOURCE
jacoby.comAug 31, 2018

Price reaction & history

Milk (Class III)▲bullishSO FAR1d +0.9%5d -1.0%20d -1.6%

After 32 past bullish weather events, Milk (Class III) moved a median +0.1% over 5 sessions (50% higher; middle half -0.7% to +3.4%), and +3.2% over 20.

Jul 22, 2026Hot Weather Gives Cheese Markets a Boost as Milk Supplies Tighten - Dairy Herd+0.2%
Jul 27, 2024Dairy Market Mania: How Heatwaves, Bird Flu, and Heifer Shortages are Shaking Up Milk Production and Prices | The Bullvine+2.4%
Jul 6, 2017Food Prices Near 2-Year High Thanks to a Record Surge in Butter and Wheat - Bloomberg-0.3%
Sep 25, 2022Global dairy deficit to buoy milk markets-0.1%
Jan 3, 2019Tight margins, weather slow global milk production | Capital Press+1.7%

Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.

Milk (Class III) MILK · GP ▸

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