MD_DA124                                                         
DA                                                               
MD DA124 Butter - Oceania                                        

MADISON, WI.  March 19, 2015 (REPORT 11)                         

OCEANIA                                                          
INFORMATION GATHERED  03/09/2015 - 03/20/2015                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

BUTTER:  Butter prices moved substantially lower on both ends of the range 
this period.  Lower prices were prompted as international buyers have 
become more price conscious and looked increasingly to Europe as a 
competitively priced alternative source.  Some buyers continue to hold off 
on major volume purchases, knowing that global supplies in the northern 
hemisphere will be increasing in the coming weeks.  Demand for butter has 
declined compared to recent weeks with many of the major buyers having 
covered their needs for Q2.  Butter stocks available for export are mixed 
in Oceania with the best availability coming from New Zealand.  Australian 
butter stocks are tight with little being offered for export, beyond 
current commitments.  Australian butter production has been reduced due to 
the good demand for fluid cream and other fat based dairy products.  
Butteroil prices also saw a market correction this period and moved lower.  
Southeast Asia continues to show a willingness to make purchases at lower 
price levels.  At the March 17 GDT event #136, NZ butter averaged 
$3,555/MT for May contracts, -9.5% from the prior event.  Butter for all 
regions and contracting periods averaged $3,555/MT, -9.4%.  New Zealand 
AMF prices averaged $3,872/MT for May contracts, -8.8% from the prior 
event.  For all contracting periods, the AMF price average was $3,877/MT, 
-8.4%.  
                                                                 
82% BUTTERFAT:                           3,500 - 4,000           

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