MD_DA126                                                         
DA                                                               
MD DA126 Skim Milk Powder - Oceania                              

MADISON, WI.  December 22, 2016 (REPORT 51)      

OCEANIA                                                          
INFORMATION GATHERED  12/12/2016 - 12/23/2016                    
U.S. DOLLARS PER METRIC TON, FOB PORT    

SKIM MILK POWDER (SMP):   
 
Skim milk powder prices in Oceania are steady this week. Current 
prices rest at the highest level of 2016. Potential SMP buyers are 
being very cautious. EU SMP stocks and sales of intervention holdings 
are keeping most buyers hand to mouth as events are monitored. 
Manufacturers in Oceania are also cautious about production volumes, 
so as to minimize financial exposure from holding inventory volumes. 
Manufacturing to fulfill contracts is much preferred. Volumes of SMP 
exports from Australia July-October this year decreased 24.7% from 
the same period last year according to Dairy Australia. The value of 
SMP exports this year is 33.6% below last year. At GDT Event 178 on 
December 20, 2016, the all contracts SMP price percentage change was 
0.0% while the January contract declined 0.8%.

1.25% BUTTERFAT:                         2,325 - 2,400           

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