MD_DA106                                                         
DA                                                               
MD DA106 Skim Milk Powder - Europe                               

MADISON, WI.  March 16, 2017 (REPORT 11)                         

WESTERN EUROPE                                                   
INFORMATION GATHERED  03/06/2017 - 03/17/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

SKIM MILK POWDER (SMP):  

Skim milk powder prices in Europe weakened at each end of the price 
range. Larger magnitude declines occurred in France and Netherlands, 
less so in Germany. Dutch SMP pricing is now very near the Euro 
intervention price, ?1,698/MT, which in U.S. Dollars with a 1.0623 
exchange rate is $1,804/MT. The SMP price is expected by a number of 
buyers to remain around current levels given the high stock levels 
and that the seasonal peak of milk collection is still to come. 
Nevertheless, there has also been surprise among some market 
participants at the pace of recent SMP market weakness. Contributing 
to price weakness has been increasing buyer pull back from completing 
all but purchases needed for short term needs. This has been true 
both as to customers in Europe as well as globally. Compounding buyer 
pacing, there has been a recent tightness in availability of 
containers and freight space for exports. Present interest in 
intervention stocks has decreased. The Dairy Market News February 
2017 Western Europe SMP monthly average price per metric ton was 
$2,088, compared with $1,749 one year earlier.
                                                                                                   
1.25% BUTTERFAT:                         1,850 - 2,025       

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