Report 31 – Released on July 30, 2020

Oceania butter prices are lower. Dairy managers in New Zealand believe that buyers recently misread butter availability. Yes, it is early in the season. However, recent buyers are able to make deals and get near term deliveries. Butter production and stocks are handling current demand. Exports were lower than had been anticipated. That contributed to weaker prices. Increasing expectations for seasonal butter production volumes also impact prices as more manufacturers and buyers come to believe stocks in coming months will be adequate. Late July milk production is increasing from seasonal lows, but still has a long way to go before butter churning appreciably engages. When that happens, confidence is higher for the volumes expected to result. Current demand is uneven.

     Oceania, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          3,475 - 3,575


     Information for the period July 20 - 31, 2020, issued biweekly

Secondary Sourced Information:

At GDT event 264 on July 21, the butter all contracts price, $3,533, decreased 4.9 percent.The August contract, $3,505, decreased 7.3 percent.

New Zealand butter exports January – June 2020, 116,768 MT, decreased 20.5 percent from January – June 2019, according to Eucolait. The main export destinations January – June 2020, quantities, and percents of the total, were China, 27,484 MT, 23.5 percent;Australia, 13,583 MT, 11.6 percent; and Saudi Arabia, 9,898 MT, 8.5 percent.

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

     Additional Dairy Market News Information:
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