Report 21 – Released on May 21, 2020

Butter prices in Oceania are lower. Various factors have converged to weaken prices. The continuing disparity with lower European butter prices has refocused some buying interest to Western Europe, where heavy butter supplies have sent some inventories into government funded Private Storage Aid (PSA) programs. Manufacturers in Western Europe are motivated to make deals. Recent demand from North Asia and Southeast Asia has weakened. Those areas are typically active buyers of Oceania butter. Finally, spot market demand for Oceania butter is low overall.

  Oceania, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          3,800 - 3,900


     Information for the period May 11 - 22, 2020, issued biweekly

Secondary Sourced Information:

At GDT event 260 on May 19, the butter all contracts price, $3,803, decreased 1.9 percent. The July contract, $3,800, decreased 2.1 percent. The June contract did not trade.

Australian exports of butter July 2019 – March 2020, 6,231 MT, compared with July 2018 –March 2019, decreased 37.5 percent according to Dairy Australia. January – March 2020 exports of butter, 2,700 MT, decreased 51.8 percent YOY according to CLAL data made available to USDA.

 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