Butter - Oceania
USDA - Thu Dec 07, 9:36AM CST
MD_DA124                                                         
DA                                                               
MD DA124 Butter - Oceania                                        

MADISON, WI.  December 07, 2017 (REPORT 49)                      

OCEANIA                                                          
INFORMATION GATHERED  11/27/2017 - 12/08/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

BUTTER:     

	Butter prices in Oceania dipped. At GDT Event 201 on December 5, 
the butter all contracts price, $4,575, decreased 11.1 percent. The 
January contract, $4,650, decreased 24.3 percent. Butter price changes 
were negative percentages for each reported contract period. While 
some observers expected weaker prices, few expected the magnitude of 
the weakness. Post event consideration often mentioned that many large 
buyers were pretty well stocked through 2017. 
       Buyers did not come to the GDT particularly motivated to close 
near term deals. Expectations are that buying pressures will increase 
early in 2018 within Australia and for export markets. Recent reports 
of higher milk production in New Zealand and Australia took some 
pressure off concerns about adequacy of supplies.
       Seasonal butter production in Australia July-September, 12,075 
MT, is 34 percent below the same period last year, according to Dairy 
Australia. 
                                                                 
82% BUTTERFAT:                           4,500 - 5,200      


0930CT 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