Report 3 – Released on January 21, 2021

The Oceania butter price range moved up. Regional butter price increases, even with a pricerange well higher than for Western European butter, speaks to the challenge in producingenough butter to satisfy customers. Most dairy sources in New Zealand attribute strongbutter buying to China. Australian exports have slowed, in substantial part due to theexigencies of domestic demand. Some export deals are made with a premium to induce exportersto commit. Seasonally declining regional milk intakes leave buyers disinclined to adopt await and see approach to butter buying. Buyers are closing deals to lock in supplies.Contracted volumes are being readily taken.

Oceania, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          4,700 - 4,825


     Information for the period January 11 - 22, 2021, issued biweekly

Secondary Sourced Information:

At GDT event 276 on January 19, 2021, the butter all contracts price, $4,735, increased 4.6percent. The February contract, $4,821, increased 6.7 percent.

Butter exports from Australia January – November 2020, 14,000 MT, decreased 12.2 percentfrom January – November 2019, according to CLAL data made available to USDA. The main exportdestinations January – November 2020, quantities, and percent change YTD, were China, 3,044MT, +90.25 percent; Thailand, 2,069 MT, -39.22 percent; and United States, 1,237 MT,-42.69 percent.

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

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