MD_DA106                                                         
DA                                                               
MD DA106 Skim Milk Powder - Europe                               

MADISON, WI.  February 02, 2017 (REPORT 5)                       

WESTERN EUROPE                                                   
INFORMATION GATHERED  01/23/2017 - 02/03/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

SKIM MILK POWDER (SMP):                                          
                                                                 
European skim milk powder prices declined at the lower end of the 
price range but remained stable at the top. The overall outcome takes 
into account the greater decline in Dutch and French prices 
contrasted with a much slighter decrease in German SMP pricing. 
European SMP price weakness has been noted to have developed over the 
last two weeks. A market participant observed that a growing sense of 
being unsettled has developed. An emotional factor is seen as 
settling in, related to the fact of intervention stocks and 
continuing nervousness about disposition of those stocks. There is 
less confidence about the potential for exporting SMP. An additional 
factor impacting prices is that on January 31, the European 
Commission announced that it does not intend to continue the 
currently running PSA SMP schemes (210 days and 365 days) beyond the 
end of February. This announcement had been anticipated. EU SMP 
production January-November 2016 increased 4.8% according to 
Eurostat.

1.25% BUTTERFAT:                         2,150 - 2,300           


0930c eric.graf@ams.usda.gov 
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