MD_DA124                                                         
DA                                                               
MD DA124 Butter - Oceania                                        

MADISON, WI.  January 08, 2015 (REPORT 1)                        

OCEANIA                                                          
INFORMATION GATHERED  12/22/2014 - 01/09/2015                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

BUTTER:  Butter prices moved higher on both ends of the range.  Butter 
production is showing the typical seasonal decline for this time of year, 
due to the declines in milk production.  Pricing is two tiered in Oceania 
with higher prices in Australia, supported by good domestic demand and 
reduced supplies for export, while New Zealand has readily available 
supplies and prices on the lower end of the range.  As a result of this 
situation, the bulk of butter exports coming out of Oceania are New 
Zealand sourced.  Butteroil production has declined, but demand remains 
fairly active with some increased interest coming from Russia.  According 
to Dairy Australia, July-October exports of butter were down 25.2% 
compared to the same period a year ago.  At the January 6 GDT event #131, 
NZ butter averaged $3,575/MT for the March 2015 contracts, +12.7% from the 
prior event.  Butter for all regions and contracting periods averaged 
$3,558/MT, +13.2%.  New Zealand AMF prices averaged $4,509/MT for the 
March contracts, +6.5% from the prior event.  For all contracting periods, 
the AMF price average was $4,493/MT, +6.8%.  

82% BUTTERFAT:                           3,200 - 3,800           

0930C rick.whipp@ams.usda.gov 608.278.4151
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-home