Report 11 – Released on March 14, 2019

Oceania butter prices strengthened. The market tone is firm. Demand for available butter is very good. With the current milk production season winding down, butter output is moving lower and will continue this trend, something that buyers are well aware of, enhancing buying interest. The advent of Lent signals the start of Easter seasonal demand for tightening butter stocks.

Oceania, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                     4,650 - 4,725

Information for the period March 4 – 15, 2019, issued biweekly

Secondary Sourced Information:
This milk production season, July 2018 ± January 2019 butter exports from Australia, 7.0 million MT, increased 16.5 percent from year earlier, according to Dairy Australia. The value of Australian butter exports, 54.5 million Australian dollars, increased 17.4 percent.
Butter exports from New Zealand during January 2019, 51,000 MT, were up 41.2 percent from January 2018, according to CLAL.
The table below shows the top export destinations and country percent change comparing January 2019 with January 2018.

New Zealand Butter Exports

                           % Change Jan.
     Destination           2019/2018
     China                   -8.1
     Philippines           +192.0
     United Arab Emirates   +78.6
     Australia              -16.4
     Saudi Arabia           +26.7
At GDT event 231 on March 5, the butter all contracts price, $4,657, increased 3.7 percent. The April contract, $4,705, increased 8.5 percent.

Published by:
     Dairy Market News - Madison, WI
     Eric Graf, 608.422.8590
     Email: eric.graf@ams.usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (MyMarketNews): https://mymarketnews.ams.usda.gov/
     DMN Database Portal: https://www.marketnews.usda.gov/mnp/da-home