MD_DA124                                                         
DA                                                               
MD DA124 Butter - Oceania                                        

MADISON, WI.  January 19, 2017 (REPORT 3)                        

OCEANIA                                                          
INFORMATION GATHERED  01/09/2017 - 01/20/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

BUTTER:    

Oceania butter prices increased at the bottom of the price range but 
are steady at the top. Prices at the bottom of the price range are 
higher than anytime during 2016 while top of range prices remain at 
the high level for 2016. New Zealand butter stocks are now in shorter 
supply because processors are directing some milk away from butter 
toward whole milk powder. This is expected to continue for a while as 
manufacturers are aware that butter prices in Western Europe are 
higher still so they do not feel constrained due to that factor. 
Australian 2016 exports of butter through November decreased 11.8% 
from the same period of 2015, according to Eucolait. Main destinations 
and percent of the total were Singapore, 16.2%; Malaysia, 10.3%; and 
UAE, 9.8%. At GDT Event 180 on January 17, 2017, the all contracts 
butter price percentage change was +1.6%.
                                                                 
82% BUTTERFAT:  				4,375 - 4,475           


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