MD_DA124

     Butter/Butteroil - Oceania

     Report 25 - Released on June 20, 2019

     Oceania butter prices are lower. This may seem counterintuitive considering that butter
     production is seasonally lower. Butter production and sales activity are light, which is
     expected at this time of the year. Most butter activity involves delivery of previously
     contracted sales or production for domestic consumption, especially in Australia.

     With weaker Western European prices, there is some impetus for a downward price adjustment
     for current sales in Oceania. Some observers also believe that more Oceania butter in
     storage became available to buyers, which contributed to short term price weakness.

     Illustrating June butter production in seasonal terms, Australia butter production during
     June of the 2017/2018 season was already trending up from previous month, using Dairy
     Australia data. This as milk production trended lower. Butter production is not in exact
     sync with milk production. With milk production seasonally low, a greater percentage of milk
     is flowing into butter churns than some higher milk production months. Manufacturers are
     striving to keep domestic markets supplied, as well as increase profitability.

     Oceania, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          4,475 - 4,700


     Information for the period June 10 - 21, 2019, issued biweekly

     Secondary Sourced Information:

     At GDT event 238 on June 18, the butter all contracts price, $4,553, decreased 5.7 percent.
     The July contract, $4,700, decreased 10.1 percent.

     Butter exports from Australia January-April 2019, 8,100 MT, were up 78.3 percent from
     January-April 2018, according to CLAL data provided to USDA.

     Butter exports from New Zealand January-April 2019, 184,000 MT, were up 17.3 percent from
     January-April 2018, according to CLAL.
     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/