Oceania butter prices moved higher. Oceania butter pricing remains lower than in Western Europe. Less butter is being made in Oceania late in the season, yet demand remains active.
The combination of disappointing Australian milk production results, and a late season sag in New Zealand milk production, have been limiting factors for butter manufacturers. WMP production imperatives continue to compete for milk. Much of the currently produced butter is already committed. Spot market activity is thin.
Oceania, 82% Butterfat, Free on Board - Port Butter
Price Range - $/MT: 5,650 - 5,800
Information for the period April 15 - 26, 2019, issued biweekly
Secondary Sourced Information:
Butter exports from Australia January-February 2019, 3,400 MT, were up 72 percent from January-February 2018, according to CLAL. The magnitude of this data is tempered by a couple of factors. Two months of a year are a narrow sample. Moreover, Australia imported slightly more than twice as much butter during January-February this year than it exported.
The table below shows the top export destinations and country percent change comparing January-February 2019 with January-February 2018.
AUSTRALIA BUTTER EXPORTS
DESTINATION 2019/2018 MT
THAILAND +91 803
UNITED STATES * 758
MALAYSIA +37 431
*no 2018 comparison
At GDT event 234 on April 16, the butter all contracts price, $5,544, increased 3.5 percent. The May contract, $5,655, increased 3.3 percent.
Dairy Market News - Madison, WI
Eric Graf, 608.422.8590
Additional Dairy Market News Information:
Dairy Market News (DMN) by Phone: (608)422-8602
DMN Website: https://www.ams.usda.gov/market-news/dairy
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