MD_DA126                                                         
DA                                                               
MD DA126 Skim Milk Powder - Oceania                              

MADISON, WI.  March 17, 2016 (REPORT 11)                         

OCEANIA                                                          
INFORMATION GATHERED  03/07/2016 - 03/18/2016                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

SKIM MILK POWDER (SMP):  

Current skim milk powder prices declined slightly at both ends of the 
price range. At the March 15 GDT event #160, SMP for all regions and 
contracting periods averaged $1,731 per MT, -2.5%. For the April 16 
contract period, prices averaged $1,690, up slightly at +1.2% from the 
prior event. However, all contract periods following contract 1 resulted 
in price declines. Dairy Australia reports that January 2016 SMP exports 
were 16.5% above the volume of exports during January 2015. However, the 
January 2016 value of butter exports was 14.8% below 2015, reflecting 
weak prices in recent months. The SMP markets continue to struggle with 
heavy volumes of product seeking buyers. EU intervention continues to 
tether prices toward intervention levels. There is little expectation of 
stronger pricing in the near future, especially with proposals to expand 
allowable volumes of product to enter the EU intervention program.

                                                                 
1.25% BUTTERFAT:                         1,675 - 1,800           


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