Report 15 – Released on April 11, 2019

Oceania butter prices firmed. Current butter pricing compared with one year ago, is $25.00 lower at each end of the price range. Extremely strong early year export demand has contributed to butter price strength. Buyers are quite aware than seasonal production will continue to move lower for several months. Many buyers are already contracted. However, spot market availability of butter is expected to keep prices near current levels in the coming weeks as last-minute buyers seek out supplies.

Oceania, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          5,450 - 5,525

Information for the period April 1 - 12, 2019, issued biweekly

Secondary Sourced Information:

Butter exports from New Zealand January-February 2019, 103,000 MT, were up 46.5 percent from January-February 2018, according to CLAL. The table below shows the top export destinations and country percent change comparing January-February 2019 with January- February 2018.

 NEW ZEALAND BUTTER EXPORTS
                  JAN-FEB 2019

                           % CHANGE
     DESTINATION           2019/2018      MT

     Iran                   +57.0        9,797
     China                  -31.6        8,567
     Philippines           +138.0        8,239
     Australia               -8.7        6,220

Butter imports by China January-February 2019, 19,000 MT, decreased 12.5 percent from January-February 2018, according to CLAL. New Zealand overwhelmingly dominates the top ten sources, with EU countries, Australia, and Argentina providing the balance. The United States is not among the top ten sources.

At GDT event 233 on April 2, the butter all contracts price, $5,374, increased 5.8 percent. The May contract price, $5,475, increased 7.4 percent. One year ago, the butter all contracts price was $5,494 and the May contract was $5,530.

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

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