MD_DA106                                                         
DA                                                               
MD DA106 Skim Milk Powder - Europe                               

MADISON, WI.  January 21, 2016 (REPORT 3)                        

WESTERN EUROPE                                                   
INFORMATION GATHERED  01/11/2016 - 01/22/2016                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

SKIM MILK POWDER (SMP):   

Skim milk powder prices weakened. Production is at a high level, higher 
than recent weeks. With little demand for increased production, 
intervention sales have increased from last week and prices have 
softened. Intensified preparations are underway by some manufacturers to 
add to the flow of SMP able to be sold into intervention. During the 
first two weeks of 2016, slightly over 1/4 of the volume of SMP sold into 
intervention during all of 2015 went into intervention. It should not be 
overlooked that notwithstanding the fact of intervention, sales of SMP 
from manufacturers favored by some customers keep a price range above 
intervention pricing. Eurostat reports that January-November EU 
production of SMP is 8.6% above the same period in the prior year. The 
top three January-November 2015 export destinations for EU manufactured 
SMP and percent change from January-November of the previous year are: 
Algeria, -23%; Egypt, +25%; and China, -21%.                                                      
                                       
                                                                 
1.25% BUTTERFAT:                         1,700 - 1,800           


0930c Eric.Graf@ams.usda.gov 608.557.7005
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