MD_DA124

     Butter/Butteroil - Oceania

     Report 27 - Released on July 03, 2019

     Butter prices in Oceania are weaker. Buyer interest for current needs is sluggish, as most
     buyers are amply stocked. There is a low level of current market activity. Sellers who seek
     to move butter, made from last season¶s milk in both Australia and New Zealand, are not
     being overly strident in price negotiations. Moving the butter along is desirable.

     While early season milk production is increasing slowly, it is still low production volumes
     compared to where it will be in even one month. This is especially true in New Zealand,
     leading to butter churning there remaining at a lower level for now. Most production is
     destined for markets in Australia and New Zealand rather than export. Contracting for the
     months ahead is actively being worked on.

     Oceania, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          4,225 - 4,325


     Information for the period June 24 -  July 5, 2019, issued biweekly

     Secondary Sourced Information:

     At GDT event 239 on July 2, the butter all contracts price, $4,339, decreased 4.8 percent.
     The August contract, $4,245, decreased 9.7 percent.

     Butter exports from New Zealand January - May 2019, 221,000 MT, were up 11.1 percent from
     January - May 2018, according to CLAL data provided to USDA.
     Published by:
     Dairy Market News - Madison, WI
     Eric Graf, 608.422.8590
     Email: Eric.Graf@usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (MyMarketNews): https://mymarketnews.ams.usda.gov/