Butter/Butteroil – Oceania at the End of November 2019

Report 47 – Released on November 21, 2019

Butter prices in Oceania are lower, reflecting weaker pricing for dairy fats in the region. Recent butter exports have slowed, with sources specifically mentioning exports to China. Churning schedules remain at or near seasonally high levels. Much current production is filling contracts. However, previously unforeseen volumes of butter now being produced have led to more current stocks than had been expected.

That has impacted pricing. There is some uncertainty resulting from the unanswered question as to how churning schedules will respond to declining regional milk production in coming months. While shortages are not contemplated, a matter of interest is whether stocks might be slightly long.

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

Price Range – $/MT: 4,025 – 4,200

Information for the period November 11 – 22, 2019, issued biweekly

Secondary Sourced Information:

At GDT event 248 on November 19, the butter all contracts price, $4,061, decreased 1.3 percent.

The December contract, $4,200, decreased 1.1 percent.

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