Report 11 – Released on March 12, 2020

Butter prices in Oceania are higher. Export buyers are continuing to contract for additional deliveries. Most butter exports go to countries other than China. Thus, the impact of corona virus, which has slowed exports of some dairy powders has not similarly slowed butter.Butter production in Oceania has seasonally slowed. This also is a factor putting upward pressure on prices. Finally, manufacturers are juggling filling orders against building inventories for the slowest time of the season in a few months.

 Oceania, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          4,075 - 4,350


     Information for the period March 2 - 13, 2020, issued biweekly

Secondary Sourced Information:

Australian exports of butter July 2019 – January 2020, 4,589 MT, compared with July 2018 –January 2019, decreased 34.3 percent according to Dairy Australia.

Butter exports from New Zealand during January 2020, 27,159 MT, decreased 3.3 percent from January 2019, according to Eucolait. During 2019, China, the largest export customer,accounted for 22.5 percent of butter exports from New Zealand.

At GDT event 255 on March 3, the butter all contracts price, $4,131, increased 1.0 percent.The April contract, $4,350, increased 6.7 percent.

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

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