MD_DA124

     Butter/Butteroil - Oceania

     Report 35 - Released on August 29, 2019

     Butter prices in Oceania are lower. Observers attribute this to weaker demand at current
     price levels. This early in the season, buyers also have confidence that production will be
     increasing in the months ahead and butter availability will expand. Thus, there is some
     buyer price selectivity at this time.

     New Zealand butter production is increasing, and export orders are more able to be filled as
     the milk production season advances. In Australia, butter remains attractively profitable,
     even to the point of some early season milk being diverted away from WMP production into
     butter/SMP. Continuing milk tightness in Australia is still a problem for some dairy
     manufacturers.

     Oceania, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          3,950 - 4,050


     Information for the period August 19 - 30, 2019, issued biweekly

     Secondary Sourced Information:

     At GDT event 242 on August 20, the butter all contracts price, $4,025, decreased 3.4
     percent. The September contract, $4,045, decreased 3.6 percent.

     Butter exports from New Zealand January - July 2019, 292,000 MT, were down 1.9 percent from
     January - July 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 (My Market News): https://mymarketnews.ams.usda.gov