MD_DA124                                                         
DA                                                               
MD DA124 Butter - Oceania                                        

MADISON, WI.  July 21, 2016 (REPORT 29)                          

OCEANIA                                                          
INFORMATION GATHERED  07/11/2016 - 07/22/2016                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

BUTTER:  

Butter prices weakened at each end of the price range, 
reversing recent increases. Buying interest also 
declined following recent active additions to 
inventories by some buyers. At GDT Event 168 on July 
19, butter prices for the August contract declined 
4.7%, the September contract declined 11.5%, and the 
all contract price declined 5.0%. The magnitude of 
price weakness was unanticipated by a number of 
observers. The volume of Australian butter exports July 
2015-May 2016 declined 32.3% compared with one year 
earlier, according to Dairy Australia. The value 
declined 28.4%. Australian butter production year to 
date through April declined 5.2% from the prior year. 
New Zealand butter exports January-May 2016 declined 
1.1% from the same period of 2015 according to 
Eucolait. The top three export destinations and 
percentage of total exports are: China, 14.7%; Iran, 
13.6%; and Egypt, 11.7%.
                                                                                                                     
82% BUTTERFAT:                           2,650 - 3,000   

0930c Eric.Graf@ams.usda.gov 608.557.7005
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