MD_DA124                                                         
DA                                                               
MD DA124 Butter - Oceania                                        

MADISON, WI.  August 17, 2017 (REPORT 33)                        

OCEANIA                                                          
INFORMATION GATHERED  08/07/2017 - 08/18/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

BUTTER:  

       The Oceania butter price range widened, reaching the highest 
level of 2017 at the top but declining at the bottom. The pull from 
prices in Europe is felt in Oceania, particularly in export markets. 
Some domestic butter sales between longstanding manufacturers and 
customers are less affected by higher global prices, at least for now.
       Wet weather in New Zealand during recent weeks has slowed the 
seasonal advance of milk production, further driving near term butter 
price increases. 
	Australian butter production in June, 3,864 MT, was down 22.8 
percent from June 2016. Production July 2016-June 2017, 65,338 MT, was 
18.1 percent lower than the previous twelve months.
       At GDT Event 194 on August 15, the butter all contracts price, 
$5,735, decreased 1.3 percent. The slight price weakness somewhat 
surprised observers. The September contract increased 3.9 percent.                              
                                                                                                                        
82% BUTTERFAT:                           5,700 - 6,650           


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