Butterfat Prices

Well, well, well, it’s late August (8/25) and guess what…butterfat prices are going DOWN. Just the opposite of what everyone thought would happen. Prices are still above $2.00 a pound (and will probably stay above that level), but not at the $2.25 level of just 10 days ago. Other ingredients are range bound and some, like whey powder, are up. Last year many mix companies got hammered because of the record butterfat prices that occurred in September and held through November. This year, primarily because butterfat inventories are so high, it doesn’t appear we will reach those same levels. Depending on what butterfat prices do next month, mix prices could go down in October. We’ll see…