MD_DA126                                                         
DA                                                               
MD DA126 Skim Milk Powder - Oceania                              

MADISON, WI.  October 15, 2015 (REPORT 41)                       

OCEANIA                                                          
INFORMATION GATHERED  10/05/2015 - 10/16/2015                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

SKIM MILK POWDER (SMP):                                          

Prices for SMP are up following upticks in global pricing. Some 
sellers are hesitant to contract too heavily in a rising market.  
Production is mixed as milk production increases. Some manufacturers 
are finding it more profitable to make butter and SMP than other 
dairy commodities. Demand is fairly steady worldwide. Manufacturers 
are comfortable with current high inventory levels. According to GTIS, 
New Zealand exports dropped in August, but are YTD 11% above year ago 
levels. China remains New Zealand's number one destination, accounting 
for 45% of New Zealand's exports, which are up by 2.2%. At the October 6 
GDT event 149, SMP for all regions and contracting periods averaged 
$2,267 per MT, +13.4%. For trading in contract period 2, December, prices 
averaged $2,239, +13.6%.

                                                                 
1.25% BUTTERFAT:                         1,975 - 2,350           


0930C Tara.Herbst@ams.usda.gov 608.557.7007
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