MD_DA106                                                         
DA                                                               
MD DA106 Skim Milk Powder - Europe                               

MADISON, WI.  May 26, 2016 (REPORT 21)                           

WESTERN EUROPE                                                   
INFORMATION GATHERED  05/16/2016 - 05/27/2016                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

SKIM MILK POWDER (SMP):  

Skim milk powder prices increased very slightly at the bottom of the 
price range. Even with the significant influence of intervention on 
markets, this slight firming is attributed primarily to customers in 
the EU who are looking ahead to seasonal declines in the milk supply 
and are believed to be securing supplies for future use at current 
low price levels. These purchases are for SMP not needed until the 
fourth quarter of 2016 and beyond. During the period May 16-23, 
slightly over 34.000 MT of SMP entered the intervention program 
according to Eucolait. The top sources during this period were 
Ireland, Germany, France, Poland and the Netherlands. With 216,797 MT 
in the program following these placements, the intervention ceiling 
of 218,000 MT is close at hand. There is anticipation that a new 
tender procedure rule may be published soon, perhaps later this week. 
There is uncertainty as to what details may be for a new program. EU 
SMP exports January-March 2015 were 1.4% below volumes of the same 
period one year earlier. Weaker global prices have been challenging 
and made sales into intervention an alternative outlet.

                                        
                                                                 
1.25% BUTTERFAT:                         1,725 - 1,850        

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