What it is
The fat of milk, churned from cream. It is traded in bulk between dairies, food manufacturers and retailers, and the amount made depends on how much cream is left after other dairy products have taken their share.
How it is usually quoted
US cents per pound in the United States; euros per tonne in Europe.
This is the customary unit of the reference market. Other markets for the same commodity may use another unit or currency, and an exchange can change a contract’s terms: its own rulebook is the authority.
Where the reference contract trades
CME in the United States and EEX in Europe, both settled in cash against published prices.
Named for orientation only. Naming an exchange or a market here does not mean that GIO4X gives access to it.
What commonly moves it
- Milk supply, which follows the season, herd size and the cost of feed
- Demand from bakers, food manufacturers and shops
- How dairies divide their milk and cream between butter, cheese and powders
- Stocks held in cold storage
These are the things people who follow this market usually watch. They explain how the market works; they do not say what the price will do next.
Where it comes from
India makes the most and consumes nearly all of it at home. The European Union, the United States and New Zealand are the other large producers, and New Zealand is a leading exporter.
The order of producers changes from year to year, so no quantities or shares are given here.
At GIO4X
Butter is not offered as a GIO4X instrument. This page is general education about a market that exists elsewhere, and nothing on it means that GIO4X quotes, trades or gives access to it.
The commodities GIO4X does list are Brent crude, gold, natural gas, palladium, platinum, silver and WTI crude.
Words worth knowing
A reference page. Educational information, not investment advice or a recommendation to trade. It gives no price and no forecast.