MD_DA124

     Butter/Butteroil - Oceania

     Report 43 - Released on October 22, 2020


     In Oceania the butter price range strengthened. Butter markets have tightened in the near
     term. Manufacturing remains quite active but contracts for future delivery keep some newly
     produced butter unavailable. Cream availability will be declining seasonally. That has led
     to some buyers being increasingly motivated to secure supply commitments of butter. This is
     both due to likely tighter availability from non-GDT sales, as well as expected higher
     prices moving forward. Butter volumes offered at this week�s GDT event were lower than two
     weeks ago.


     Oceania, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          3,625 - 3,825


     Information for the period October 12 - 23, 2020, issued biweekly

     Secondary Sourced Information:


     Seasonal butter exports from Australia July � August 2020, 2,521 MT, increased 61.1 percent
     from July � August 2019 according to Dairy Australia.

     Butter exports from New Zealand January � August 2020, 278,000 MT, decreased 8.8 percent
     from January � August 2019 according to CLAL data made available to USDA.


     At GDT event 270 on October 20, the butter all contracts price, $3,678, increased 3.3
     percent. The November contract, $3,820 increased 3.2 percent.





     Published by:
     Dairy Market News - Madison, WI
     Eric Graf, 608.422.8590
     Email: Eric.Graf@usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: https://www.ams.usda.gov/market-news/dairy
     DMN MARS (My Market News): https://mymarketnews.ams.usda.gov