MD_DA104                                                         
DA                                                               
MD DA104 Butter/Butteroil - Europe                               

MADISON, WI.  September 14, 2017 (REPORT 37)                     

WESTERN EUROPE                                                   
INFORMATION GATHERED  09/04/2017 - 09/15/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            
                                                                 
WESTERN EUROPE                                                   
                                                                 
BUTTER/BUTTEROIL:                                                

       Butter prices moved higher as strong domestic demand continues to hold sway in the 
European market. In some cases, reported prices are well above published prices as 
consumers fill their immediate needs. However, some other buyers are starting to hold 
back on purchases. There is a prevailing hope among shoppers that price concessions will 
become available, especially for long term agreements. Most purchases are hand to mouth. 
Industrial butter needs are being met and prices for butteroil remain unchanged.
	Butter exports are proving more difficult as internal demand consumes available 
supply and pricing is more favorable from other butter exporting countries.
	Butter production is under pressure as dairy processors prefer to move milk into 
cheese production rather than produce butter and powder. Through June 2017, European 
butter production is down 5.9 percent from the same period last year, according to 
Eucolait. June production is 2.9 percent below June 2016 butter production. Among the top 
seven butter producing countries, only Ireland and Italy have January-June production 
above last year, 8.9 percent and 1.7 percent, respectively. The two largest butter 
producers, Germany and France, are down 6.6 percent and 8.9 percent, respectively.

 
Data from Eucolait. Chart by USDA Dairy Market News

82% BUTTERFAT:            7,875 - 8,400                          
99% BUTTERFAT:            7,050 - 9,350                          


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-home