MD_DA104                                                         
DA                                                               
MD DA104 Butter/Butteroil - Europe                               

MADISON, WI.  May 25, 2017 (REPORT 21)                           

WESTERN EUROPE                                                   
INFORMATION GATHERED  05/15/2017 - 05/26/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            
                                                                 
WESTERN EUROPE                                                   
                                                                 
BUTTER/BUTTEROIL:                                                

	Butter and butter oil prices in Western Europe continue to rise as 
demand for milk fats outpace supply. Under normal conditions, butter stocks 
build through the spring in advance of the heavier-demand and lower-
production times at the end of the calendar year. However, butter 
inventories are currently tight. Butter production is off a little due to 
lower milk intakes, and butter makers have only a few spot loads to offer. 
Available loads are quickly secured by buyers. End users, wanting to assure 
near-term and long-term coverage, are willing to pay prices often at the top 
end of the range. 
       January-March EU butter production decreased 4.0% according to 
Eurostat. During that time frame, production in the largest European butter 
makers, Germany and France, decreased 4.0% and 8.7% respectively.
       Eucolait reports January-March EU exports of butteroil declined 56.4% 
from the same period one year earlier. January-March EU exports of butter 
declined 11.9%. Export volumes and primary destinations are shown in the 
following table:

		European Union Butter Exports
		  Main Three Destinations 
			January-March 2017 

Destination  	Quantity (MT)  % of Total
USA			 6,166  		17.0%
Saudi Arabia	 2,554  		 7.0%
China 		 2,117  		 5.8%


82% BUTTERFAT:            5,200 - 6,175                          
99% BUTTERFAT:            5,325 - 6,225                          


0930c mike.bandli@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-
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