Report 19 – Released on May 07, 2020

Oceania butter prices are lower. Sources mention several factors. At this week’s GDT event some sources commented that more butter was offered than they had expected. Another factor mentioned is the lower butter pricing in Western Europe. There is so much butter in cold storage in Western Europe that Private Storage Aid (PSA) has become available.

Oceania butter coming on the market this week faced some price resistance from buyers willing to source from Western Europe. At this late point in the Oceania milk production season, it is uncommon for regular butter buyers to not already be covered for needs. Most production is committed.

 Oceania, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          3,875 - 4,000


     Information for the period April 27 -  May 8, 2020, issued biweekly

Secondary Sourced Information:

At GDT event 259 on May 5, the butter all contracts price, $3,867, decreased 5.8 percent.The June contract did not trade.

Butter exports from New Zealand January – March 2020 declined 21 percent from January –March 2019, according to Eucolait. March 2020 butter exports declined 23 percent YOY.

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

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