MD_DA124                                                         
DA                                                               
MD DA124 Butter - Oceania                                        

MADISON, WI.  January 22, 2015 (REPORT 3)                        

OCEANIA                                                          
INFORMATION GATHERED  01/12/2015 - 01/23/2015                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

BUTTER:  Butter prices were mixed as the range narrowed with an increase 
on the low end of the range, while prices declined on the upper end.  
Butter production is slowing reflecting the decline in overall milk 
intakes.  Offerings for export have declined as manufacturers are 
balancing lower production levels with existing sales and not wanting to 
be over committed.  Export and domestic demand are good.  Global prices 
have converged over the past number of weeks and have resulted in some 
Oceania prices above European prices.  Australian domestic demand is 
strong and restricting volumes available for export and in some cases 
requiring a premium for export consideration.  The focus on butter 
production and covering future commitments has brought about a decline in 
butteroil production.  Export demand is steady with recent weeks.  
According to GTIS, China's January to November butter imports show a 63% 
increase, compared to last year with AMF imports up 79% for the same 
period.  New Zealand's November butter exports going to China made up 87% 
of China's total imported volume.  China's butteroil imports increased 
compared to the previous month, with New Zealand covering nearly 96% of 
China's imported butteroil volume.  At the January 20 GDT event #132, NZ 
butter averaged $3,605/MT for the March 2015 contracts, +0.8% from the 
prior event.  Butter for all regions and contracting periods averaged 
$3,564/MT, +0.1%.  New Zealand AMF prices averaged $4,289/MT for the March 
contracts, -5.1% from the prior event.  For all contracting periods, the 
AMF price average was $4,286/MT, -5.0%.  

82% BUTTERFAT:                           3,250 - 3,700           

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