MD_DA104                                                         
DA                                                               
MD DA104 Butter/Butteroil - Europe                               

MADISON, WI.  February 02, 2017 (REPORT 5)                       

WESTERN EUROPE                                                   
INFORMATION GATHERED  01/23/2017 - 02/03/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            
                                                                 
WESTERN EUROPE                                                   
                                                                 
BUTTER/BUTTEROIL: 

Butter prices in Western Europe weakened noticeably at each end of 
the price range. Prices are now down from late 2016 highs. Prices in 
French, Dutch and German markets all weakened. Butteroil prices 
narrowed the price range by increasing at the bottom while declining 
at the top. Some of the price weakness is attributed to expected 
seasonal patterns in Western Europe. Butter production exceeds early 
year demand, a normal situation which is weighing on prices. EU 
butter production January-November 2016 increased 3.7% according to 
Eurostat. Block butter demand is greater than packaged butter. An 
additional factor weighing on butter markets is the January 31 
announcement by the European Commission that the program for private 
storage aid for butter will not be reopened. This announcement had 
been anticipated. 

82% BUTTERFAT:            4,200 - 4,525                          
99% BUTTERFAT:            4,550 - 5,000  
                        
0930c eric.graf@ams.usda.gov 
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: http://www.ams.usda.gov/market-
news/dairy
Dairy Market News database portal: 
http://www.marketnews.usda.gov/mnp/da-home