Report 9 – Released on March 04, 2021

The Oceania butter price range increased far more than most Oceania dairy sources hadexpected. The low end of the price range reflects prices of butter last week which areeclipsed by suddenly much higher prices this week. The price strength comes from exportpurchasers, mostly seeking butter from New Zealand. The purchasers are generally from NorthAsia seeking New Zealand butter. Australian butter is mostly committed to domestic markets.Moreover, annual New Zealand butter export volumes are tens of times greater than fromAustralia, which is not a significant player in butter exports compared with New Zealand.

Now there is uncertainty as to whether the current price level can stand. It is well aboveprices of the leading global butter exporter, the European Union, where milk production isseasonally increasing. Moreover the surprising price increase has some potential buyersfeeling that there may not be much more upward price potential, thus contemplating steppingback in case there are weaker prices ahead.

Oceania, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          5,075 - 5,950


     Information for the period February 22 -  March 5, 2021, issued biweekly

Secondary Sourced Information:

At GDT event 279 on March 2, 2021, the butter all contracts price, $5,826, increased 13.7percent. The April contract, $5,925, increased 14.4 percent.Calendar year 2020 butter exports from Australia, 11,372 MT, increased 2.1 percent fromcalendar year 2019 according to Eucolait. Top 2020 export destinations, quantity exported,and percent of calendar year 2020 exports include China, 3,181 MT, 28 percent; Singapore,1,430 MT, 12.6 percent; and Malaysia, 1,344 MT, 11.8 percent.

Calendar year 2020 butter exports from New Zealand, 233,339 MT, deceased 13.8 percent fromcalendar year 2019 according to Eucolait. Top 2020 export destinations, quantity exported,and percent of calendar year 2020 exports include China, 62,094 MT, 26.6 percent;Australia, 28,524 MT, 12.2 percent; and Russia, 17,984 MT, 7.7 percent.

 Butter Export Volumes and Percent Change 2019/2020
     Country             Volume  MT       Percent Change

     EU                      259,033          +4.7
     New Zealand       233,339          -13.8
     USA                     21,623           +0.8
     Australia              11,372           +2.1





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

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