Report 9 – Released on February 28, 2019

ceania butter prices declined at the low end of the price range. They remained steady at the top. Current availability of butter is pretty good, leading to the lower end price movement. Supplies appear to be more committed in coming months and that is maintaining upper end price levels. Some buyers are expecting lower end prices to firm in coming months. Expectations can change as so much of the regionļs butter moves into export to Asia first, then the Middle East, and also Australia. Export demand can be difficult to predict as to timing and intensity of demand at any point in time. This is especially true for butter buying from China. Overall, expectations in coming months are more often expressed to be for higher prices.

Oceania, 82% Butterfat, Free on Board – Port Butter

Price Range – $/MT: 4,325 – 4,525

Information for the period February 18 – March 1, 2019, issued biweekly

Secondary Sourced Information:

This milk production season, July – December 2018 butter exports from Australia, 6,032 MT, increased 13.1 percent from year earlier, according to Dairy Australia. The value of Australian butter exports increased 17.8 percent. At GDT event 230 on February 19, the butter all contracts price, $4,495, increased 1.2 percent. The March contract, $4,335, decreased 3.5 percent.

Published by: Dairy Market News – Madison, WI Eric Graf, 608.422.8590

Email: eric.graf@ams.usda.gov

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