MD_DA104

     Butter/Butteroil - Europe

     Report 3 - Released on January 17, 2019

     Butter prices in Europe moved up. Butteroil prices firmed at the low end of the price range.


      Buyers only now seeking EU manufactured butter for Q1 are likely to pay higher prices.
     Supply, demand, and cream costs are unified in pushing prices up. Sellers are not in any way
     limited in terms of finding willing buyers. Moreover, cream prices are increasing, which
     helps push up butter prices. Both manufacturers and potential buyers have enough uncertainty
     as to pricing likely to prevail in Q2, that contracting is slow for that period.

      Buyers have some anxiety about not being covered. With the prevailing price expectation of
     most manufacturers¶ hovering above the comfort level of many buyers, some buyers are waiting
     a bit longer before committing. Because many buyers will not risk going too long without
     more supply assurance, a reconciliation is likely in coming weeks.

     Western Europe, 82% Butterfat, Free on Board - Port Butter
     Price Range - $/MT:                          4,875 - 5,275


     Western Europe, 99% Butterfat, Free on Board - Port Butteroil
     Price Range - $/MT:                          6,850 - 6,975


     Information for the period January 7 - 18, 2019, issued biweekly
     Published by:
     Dairy Market News - Madison, WI
     Eric Graf, 608.422.8590
     Email: eric.graf@ams.usda.gov

     Additional Dairy Market News Information:
     Dairy Market News (DMN) by Phone: (608)422-8602
     DMN Website: http://www.ams.usda.gov/market-news/dairy
     DMN Database Portal: http://www.marketnews.usda.gov/mnp/da-home