MD_DA124                                                         
DA                                                               
MD DA124 Butter - Oceania                                        

MADISON, WI.  May 09, 2013 (REPORT 19)                           

OCEANIA                                                          
INFORMATION GATHERED  04/29/2013 - 05/10/2013                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

BUTTER:  Oceania butter prices trended lower from the prior 
period's report.  Indications are weaker for butterfat with both 
butter and AMF prices lower at the latest gDT event.  Offering 
prices are lower within the region.  Demand is at light to 
moderate levels.  Volumes are moving out under arrangements, but 
new interest is more subdued.  Some buyers are concerned about 
the relative high levels and do not want to over position 
holdings.  With milk production declining seasonally and 
additionally impacted by dry conditions, milkfat quantities are 
in tighter positions.  Offering volumes of butter and AMF are 
light.  Consumer products are taking the bulk of fat offerings 
in Australia.  At the May 1 gDT event, butter averaged $4,575/MT 
for the July contracts, -1.4%, and $4,409/MT for all contract 
periods, -6.7%.  AMF prices averaged $4,795/MT for the nearby 
July contracts, -4.5% from the prior event.  The AMF price 
average was $4,675/MT for all contract periods, -5.2%.  
                                                                 
82% BUTTERFAT:                           4,200 - 4,600           
                                                                 

0930c Butch Speth Butch.Speth@ams.usda.gov 608.278.4152