February 13

2/13 - Butter prices were out-of-sight in 2022, hitting a record-high $3.2675 per pound in Oct and averaging $2.87 for the year, up 65.5% from $1.73 in 2021. Butter production in 2022 was down 0.7% from 2021 and 10.1% below 2020 output. But cold storage stocks at the end of Dec were 8.1% above year-ago, suggesting high prices suppressed at least some demand - and that there is enough supply to keep prices relatively tame. Butter, at $2.4125 per pound (2/10) is up from $2.26 in late Jan but is still in an expected $2.20-$2.60 range for the first half of 2023. Retail and commercial bakery demand should pressure prices ahead of Easter (April 9). The USDA is forecasting butter to average $2.33 in 2023, down 18.7% from a  year ago but still 34.7% above 2021 levels. High feed prices and the potential for a recession will likely keep milk supplies tight, and butter prices high, for most of 2023.