MD_DA104                                                         
DA                                                               
MD DA104 Butter/Butteroil - Europe                               

MADISON, WI.  May 11, 2017 (REPORT 19)                           

WESTERN EUROPE                                                   
INFORMATION GATHERED  05/01/2017 - 05/12/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            
                                                                 
WESTERN EUROPE                                                   
                                                                 
BUTTER/BUTTEROIL:      

      Butter prices in Western Europe are stronger, now at the 
highest level of 2017. Price advances were noted in Germany, 
France, Netherlands and Italy. Lower price range pricing is even 
with Oceania, but slightly lower at the top. The price range for 
butteroil in Europe broadened this week. 
      Butter stocks in Western Europe are tight. Cream prices 
have been increasing, which is attributed to the lower than 
expected milk supply in Europe. Purchasing from manufacturers is 
increasingly short term. Buyers are wary of locking in high 
prices, but still somewhat nervous about the potential for 
prices to continue upward. Fewer long term contracts for butter 
seem to be in effect than would be expected when compared to  
many recent years. Recent increased demand for block butter in 
the short term is particularly demanding on limited stocks of 
butter.
      EU production of butter January-February, 2017, declined 
3.7% from the same period of 2016 according to Eurostat.
      The Dairy Market News April 2017 Western Europe butter 
monthly average price per metric ton was $4,819, compared with 
$2,613 one year earlier.

82% BUTTERFAT:            4,900 - 5,050                          
99% BUTTERFAT:            5,150 - 5,900                          

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