MD_DA124                                                         
DA                                                               
MD DA124 Butter - Oceania                                        

MADISON, WI.  February 05, 2015 (REPORT 5)                       

OCEANIA                                                          
INFORMATION GATHERED  01/26/2015 - 02/06/2015                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

BUTTER:  Butter demand continues to be very active with a number of 
manufacturers finalizing Q2 sales.  A majority of supplies are committed.  
New Zealand's butter is again bringing a premium, due to the fact that it 
is a "harder" butter and holds up better in warm climates.  Best demand is 
coming from Southeast Asia and the Middle East.  Butteroil production 
continues to be restricted by the increase in butterfat demand from other 
dairy commodity manufacturers.  Available supplies have tightened, but 
prices have not responded as anticipated and may reflect that potential 
buyers have adequate supplies for the near term.  According to GTIS, 
China's January to December 2014 butter imports show a 54% increase, 
compared to last year with AMF imports up 53% for the same period.  New 
Zealand's December butter exports going to China made up the bulk of 
China's total imported volume.  China's butteroil imports decreased 
compared to the previous month.  New Zealand covered 93% of China's 
imported butteroil volume for 2014.  At the February 3 GDT event #133, NZ 
butter averaged $3,856/MT for April contracts, +7.0% from the prior event.  
Butter for all regions and contracting periods averaged $3,783/MT, +6.1%.  
New Zealand AMF prices averaged $4,038/MT for April contracts, -6.0% from 
the prior event.  For all contracting periods, the AMF price average was 
$4,067/MT, -5.4%.  

82% BUTTERFAT:                           3,400 - 3,875           

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