MD_DA104                                                         
DA                                                               
MD DA104 Butter/Butteroil - Europe                               

MADISON, WI.  July 20, 2017 (REPORT 29)                          

WESTERN EUROPE                                                   
INFORMATION GATHERED  07/10/2017 - 07/21/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            
                                                                 
WESTERN EUROPE                                                   
                                                                 
BUTTER/BUTTEROIL:  

       Butter prices in Europe are higher in U.S. dollars, reflecting 
exchange rates. Euro pricing, except for France, is close to two 
weeks ago. Prices are currently the highest of 2017 and 2016. France 
has the highest butter prices among major butter producing nations 
and Italy the lowest. Butteroil prices also firmed.  
       Factors slowing the recent upward butter price trend are varied. 
Some observers note the relatively quieter period of mid-Summer, when 
many people in Europe traditionally take time off, as a factor. It 
was observed that holiday demand is quiet demand. Also mentioned is 
some buyer fatigue with, and resistance to, the velocity of butter 
price increases.                                          
       This year, January-May, EU butter exports,64,441 MT, declined 
19.2 percent from the same period one year earlier, according to 
Eucolait. January-May, the range of percentage changes year to date 
in cumulative export volumes is from -10.5 percent in January, to -
21.5 percent in February. Export volumes and primary destinations are 
shown in the following table:

  		 EU Butter Exports
		 Main Three Destinations 
		 January-May 2017 
 
Destination       Quantity(MT)   Percent of Total  
U.S.A.         		10,305             16.0 
Saudi Arabia       	 4,388              6.8 
Iran         	   	 4,188              6.5

       In contrast with the decline in 2017 exports, EU butter imports 
increased this year. January-May, EU butter imports, 2,402 MT, 
increased 15.7 percent from the same period one year earlier, 
according to Eucolait. January-May, the range of percentage changes 
year to date in cumulative export volumes is from -15.7 percent in 
May, to +42.1 percent in January. 
       Import volumes and primary origins are shown in the following 
table:

  		 EU Butter Imports
		 Main Three Origins 
		 January-May 2017 
 
Origin            Quantity(MT)   Percent of Total  
New Zealand       2,000          83.3 
Ukraine             356          14.8 
Norway               22           0.9


82% BUTTERFAT:            6,950 - 7,475                          
99% BUTTERFAT:            6,300 - 7,600                          



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