MD_DA126                                                         
DA                                                               
MD DA126 Skim Milk Powder - Oceania                              

MADISON, WI.  January 08, 2015 (REPORT 1)                        

OCEANIA                                                          
INFORMATION GATHERED  12/22/2014 - 01/09/2015                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

SKIM MILK POWDER (SMP):  Prices for skim milk powder were unchanged.  
Production of skim milk powder remains active in the face of declining 
milk supplies as butter/SMP production are more financially viable than 
WMP production.  The strength in cream cheese production is also a 
contributing factor in maintaining milk flows to skim milk powder dryers.  
There is increased competition in the market as prices have converged 
worldwide and supplies from other global sources are readily available. 
Demand over the yearend holiday period was light.  Oceania supplies are 
building.  According to Dairy Australia, July-October exports of SMP were 
27.5% above year ago levels.  At the January 6 GDT event 131, SMP for all 
regions and contracting periods averaged $2,386 per MT, +2.8%.  For 
trading in contract period 2, March, prices averaged $2,420 for NZ 
sourced medium heat product, up $50 from the prior event.  
                                                                 
1.25% BUTTERFAT:                         2,200 - 2,600           

0930C rick.whipp@ams.usda.gov 608.278.4151
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-
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