Report 9 – Released on February 27, 2020

Oceania butter prices moved lower. Some dairy officials believe that weaker pricing in Western Europe may have two types of impacts on lower Oceania prices. Buyers from Oceania have been aware of the price disparity and some are now working on sourcing from Western Europe. Other buyers already stocked are more comfortable in slowing purchases in Oceania.Both factors are acting to soften Oceania pricing.

This is occurring even as Oceania continues to experience seasonally declining milk production, leading to declining butter churning. Some buyers feel that with Western European milk production seasonally increasing, that may help offset the factor of declining Oceania production.

The majority of regional butter exports are from New Zealand. Supplies are tight in Australia. Many manufacturers there are mostly committed into mid-year.

Oceania, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          4,050 - 4,125

  Information for the period February 17 - 28, 2020, issued biweekly

Secondary Sourced Information:

At GDT event 254 on February 18, the butter all contracts price, $4,090, decreased 3.9 percent. The March contract, $4,075, decreased 4.7 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
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov