MD_DA106                                                         
DA                                                               
MD DA106 Skim Milk Powder - Europe                               

MADISON, WI.  March 03, 2016 (REPORT 9)                          

WESTERN EUROPE                                                   
INFORMATION GATHERED  02/22/2016 - 03/03/2016                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

SKIM MILK POWDER (SMP):      


Skim milk powder pricing is slightly lower, with intervention sales 
continuing. When asked to describe conditions in a word, the word 
"volume" was offered by some manufacturers. Significant volumes are 
being manufactured and sold into intervention as a way of clearing 
milk volumes. Most current production is either to fill existing 
contracts, or for sales into intervention. Non-intervention buyers 
have been slow to step forward and complete purchases because 
intervention results in a stable pricing floor, which reduces a sense 
of urgency. Of course, intervention sales are only available to new 
production meeting certain specifications and packaging requirements. 
There are still lots of older SMP being held by some sellers, not 
eligible for intervention, which in some cases are being sold in spot 
transactions for as low as $1,400/MT. Total intervention purchases 
February 22-28, 2016 were the highest level of any week of 2016 so 
far: 9,881 MT. That brought 2016 intervention purchases for 2016 to 
54,524 MT compared to 40,281 MT for all of 2015.                                  
                                                                 
1.25% BUTTERFAT:                         1,650 - 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