MD_DA124

     Butter/Butteroil - Oceania

     Report 51 - Released on December 20, 2018

     Butter prices in Oceania firmed. Available supplies have tightened as the end of the year
     nears. Australia butter production is helping to meet strong domestic demand ahead of
     yearend holidays. Manufacturers also strive to add to inventories for the lower cream
     availability season ahead. New Zealand butter is well committed to contract buyers.

     Oceania, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          3,750 - 3,925


     Information for the period December 10 - 21, 2018, issued biweekly

     Secondary Sourced Information:

     Butter exports from Australia January-October this year were down 2.2 percent from January-
     October 2017, according to CLAL. The table below shows the top export destinations and
     country percent change comparing January-October 2018 with 2017.

                      Australia Butter Exports

                      % Change
     Destination      Jan.-Oct. 2018/2017
     Thailand         +20.1
     China            -15.8
     Malaysia         +37.5
     Singapore         -0.2
     Hong Kong         +7.8

     Butter imports to Australia January-October this year were up 24.3 percent from January-
     October 2017, according to CLAL. The table below shows the top import origins and country
     percent change comparing January-October 2018 with 2017. Imports from New Zealand total
     multiples of total combined imports from the other listed countries.

                      Australia Butter Imports

                      % Change
     Destination      Jan.-Oct. 2018/2017
     New Zealand      +24.6
     United Kingdom   -79.6
     France          +187.0
     Denmark           +9.9
     India           +127.0
     Ireland          +93.5

     At GDT event 226 on December 18, the butter all contracts price, $3,928, increased 4.9
     percent. The January contract price, $3,885, increased 2.4 percent.
     Published by:
     Dairy Market News - Madison, WI
     Eric Graf, 608.422.8590
     Email: eric.graf@ams.usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: http://www.ams.usda.gov/market-news/dairy
     DMN Database Portal: http://www.marketnews.usda.gov/mnp/da-home