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Butter price spike tied to trade rule
The price of cash butter at the Chicago Mercantile Exchange spiked twenty-six and a half cents higher Monday and prompted fifteen trades.
Mike North with Ever.ag tells Brownfield the reason is that the butter supply is a little tight right now. He tells Brownfield, “This is a function of ‘new crop’ butter. Only butter made after Dec 1 of last year is eligible for trade, so supply gets a little tighter for a bit.” North says, “The futures market has been preparing for this and didn’t experience the kind of price moves seen in (the) spot (market).”
Cash butter opened the week at $2.1050 March 2nd, after closing February 27th at $1.84 per pound.
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