MD_DA104 DA MD DA104 Butter/Butteroil - Europe MADISON, WI. January 22, 2015 (REPORT 3) WESTERN EUROPE INFORMATION GATHERED 01/12/2015 - 01/23/2015 U.S. DOLLARS PER METRIC TON, FOB PORT WESTERN EUROPE BUTTER/BUTTEROIL: The butter price range narrowed with the low end marginally increasing and the upper end price declining. Butter production is transitioning away from package butter to increased bulk production. Demand for package butter is about normal for this time of year, while bulk butter demand has increased with active export interest. Export buyers who took a wait and see attitude over the holiday period are now back in the market with the realization that prices did not decline to the degree anticipated. Technical storage of winter butter is increasing as cream volumes are lower than anticipated as milk production slows, due to levee concerns. The weaker Euro, compared to the U.S. Dollar, continues to make European butter more competitively priced globally. PSA stock levels through January 4 amounted to 22,398 MT. The Netherlands and Ireland make up a majority of the supplies held in PSA. Butteroil prices are more competitively priced with New Zealand sourced supplies, but the market has not experienced any significant increase in export interest. Import data from China for November did show some volumes of butteroil moving into China from Belgium, France and the Netherlands. 82% BUTTERFAT: 3,225 - 3,500 99% BUTTERFAT: 3,850 - 4,225 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