Report 45 – Released on November 07, 2019

Butter prices in Oceania firmed. Buyers and manufacturers had expected strengthening butter prices. Demand has been strong. Observers cite flattening of milk volumes as the peak of New Zealand’s milk season begins to fade. New Zealand churns are still as active as they can be, but sometimes cream goes to WMP rather than churns.

While Australia is secondary to New Zealand in butter production, lower July – September YOY milk production in Australia was also on the minds of some dairy buyers and manufacturers.

Finally, manufacturers feel a need to begin to build stocks for later in the season, when butter churning will slow, reflecting less milk and cream. This also causes firming current prices.

Oceania, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          4,075 - 4,250


     Information for the period October 28 -  November 8, 2019, issued biweekly

Secondary Sourced Information:

At GDT event 247 on November 5, the butter all contracts price, $4,117, increased 0.2 percent. The December contract, $4,247, increased 0.8 percent.

Butter exports from New Zealand January – September 2019, 327,000 MT, were down 3.4 percent from January – September 2018, according to CLAL data made available to USDA.

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

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