MD_DA104 DA MD DA104 Butter/Butteroil - Europe MADISON, WI. January 08, 2015 (REPORT 1) WESTERN EUROPE INFORMATION GATHERED 12/22/2014 - 01/09/2015 U.S. DOLLARS PER METRIC TON, FOB PORT WESTERN EUROPE BUTTER/BUTTEROIL: Butter prices decreased to start the New Year. Over the past few weeks, global butter prices have converged, and as a result, European butter is very competitively priced on the world market. Domestic demand has eased following the holidays, allowing for increased supplies to be available for export. Export demand has been slow to develop going into the New Year with many buyers waiting for additional market information prior to making additional purchases. Production has increased, but only marginally as fluid cream demand remains strong. PSA stock levels through the third week of December amounted to 20.9 MT. Butteroil exports continue to be limited as prices remain above Oceania levels, but the pricing gap has narrowed. Most of the current trading is being done through existing contracts. Butter exports for the EU-28 January-October period, as reported by GTIS, increased 22% over year ago levels. EU butter exports for October increased, compared to September with Saudi Arabia, Turkey and the United States expanding their import volumes. 82% BUTTERFAT: 3,200 - 3,600 99% BUTTERFAT: 3,850 - 4,400 0930c rick.whipp@ams.usda.gov 608.278.4151 USDA/AMS/Dairy Market News, Madison, Wisconsin Dairy Market News website: www.ams.usda.gov/dairymarketnews Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da- home