Prices for 72.5% butter have declined by 10-15% for two weeks in Russia
In the end of January some traders decided to sell out the products at lowered prices.
Weakening of ruble forced traders to revise prices for butter. Taking into account presence of products from Latin American, and dollar prices for Belarusian products, the price rose considerably in Russia in the first half of January. 82% products were already offered at RUB 300/kg.
It is clear that packed butter or other products made from such expensive raw materials would become prohibitive for Russian buyers. Therefore sales of bulk butter were practically stopped in the middle of the month.
Decline of demand, in turn, influenced traders. Deficiency of current assets in conditions of crisis and impossibility of loans increased risks of financial instability and bankruptcy. Therefore in the end of January some traders decided to sell out the products at lowered prices. Return of Belarusians to ruble prices in trade became an important factor also.
As a result, the prices for 72.5% butter have declined by 10-15% for two weeks. In the end of the month they were at RUB 225-235/kg in Russia.
Price for 82% butter fell not so essentially, because of presence of imported products from Argentina and Uruguay on the market. It was possible to get the products at RUB 260-270/kg.
Taking into account increase of supply at dumping prices, cost of bulk butter still may fall in the beginning of February. A temptation to buy cheap products can make additional demand.