MD_DA124                                                         
DA                                                               
MD DA124 Butter - Oceania                                        

MADISON, WI.  September 15, 2016 (REPORT 37)                        

OCEANIA                                                          
INFORMATION GATHERED  09/05/2016 - 09/16/2016                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

BUTTER:    

Butter prices increased significantly at each end of the price range. 
Several factors are mentioned by dairy market participants. 
Expectations of slightly less milk being available to make butter in 
Oceania, a growing domestic consumer market in Australia, plus a 
market adjustment moving prices closer to EU prices are all cited as 
contributors. Butter production in Australia during July was down 6.0% 
from July 2015, the first month of the new production season, 
according to Dairy Australia. Australia butter exports January-July 
2016 decreased 6.5% from the same period of 2015 according to 
Eucolait. The top three export destinations and percentage of total 
exports are: Singapore, 13.6%; UAE, 12.2%; and China, 10.9%. GDT event 
171 on September 6 yielded butter prices for the October 2016 contract 
up 22.6% and for all contracts up 14.9%.

82% BUTTERFAT:                           3,850 - 4,000           

0930c Eric.Graf@ams.usda.gov 
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