MD_DA124                                                         
DA                                                               
MD DA124 Butter - Oceania                                        

MADISON, WI.  October 12, 2017 (REPORT 41)                       

OCEANIA                                                          
INFORMATION GATHERED  10/02/2017 - 10/13/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

BUTTER:    

       Butter prices in Oceania weakened. Milk production this season in 
both New Zealand and Australia is projected higher than last season. 
While reported production for New Zealand is off to a slower than 
expected start, a seasonal increase is still projected. At this early 
point in the season, anecdotal reports are that current export 
activity with China, in particular, is very active. However, buyers 
are not desperate and still negotiate hard. The most recent reported 
butter export data is from August.
       January-August Australian butter exports, 7,612 MT, declined 50.3 
percent from the same period one year earlier, according to Eucolait. 
The range of monthly percentage changes in cumulative export volumes 
varies from -54 percent in June, to -36.7 percent in April. Export 
volumes and primary destinations are shown in the following table:
 
  		           Australia Butter Exports
                 	Main Three Destinations 
                 	January-August 2017 
 
Destination       	Quantity(MT)   Percent of Total  
China               	 1,618                20.4 
Malaysia               1,314           	16.5 
Singapore              1,281            	16.1	

       January-August New Zealand butter exports, 163,347 MT, declined 
15.1 percent from the same period one year earlier, according to 
Eucolait. The range of monthly percentage changes in cumulative export 
volumes varies from -30.3 percent in January, to -11.8 percent in 
June. Export volumes and primary destinations are shown in the 
following table:
 
  		           NZ Butter Exports
                 	Main Three Destinations 
                 	January-August 2017 
 
Destination       	Quantity(MT)   Percent of Total  
China                 36,485         	      22.3 
Australia             14,706                 9.0 
Iran                   7,882                 4.8	

       January-August China butter imports, 54,071 MT, increased 13.9 
percent from the same period one year earlier, according to Eucolait. 
The range of monthly percentage changes in cumulative import volumes 
varies from -29.9 percent in January, to +13.9 percent in August. 
Import volumes and primary origins are shown in the following table:
  		
                      China Butter Imports
                 	Main Three Origins
                 	January-August 2017 
 
Origin       	Quantity(MT)   Percent of Total  
New Zealand           46,069         	      85.2
France                 4,203                 7.8  
Australia              1,622                 3.0


       At GDT Event 197 on October 3, the butter all contracts price, 
$5,837, decreased 3.6 percent. The November contract, $6,180, 
increased 1.0 percent. 
       The Dairy Market News international monthly average price in 
dollars /metric ton for Oceania butter prices in September, 2017, 
$6,230, compares with $3,860 one year earlier.

                                    
                                                                 
82% BUTTERFAT:                           5,600 - 6,200    

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