MD_DA126 DA MD DA126 Skim Milk Powder - Oceania MADISON, WI. February 16, 2017 (REPORT 7) OCEANIA INFORMATION GATHERED 02/06/2017 - 02/17/2017 U.S. DOLLARS PER METRIC TON, FOB PORT SKIM MILK POWDER (SMP): Oceania skim milk powder prices very slightly firmed following six weeks of stable prices. Many buyers in this market are very aware of SMP pricing in Western Europe. The market trades with acute awareness of Western European supplies and prices. On the other hand, the largest regular SMP customer base for Oceania manufactured SMP is in Asia where culturally, continuing relationships are an important factor, often negating the impact of small price fluctuations. Thus, a small upward adjustment after a period of stable prices is believed by manufacturers in Oceania to not be a factor that will disrupt sales. December 2016 SMP production in Australia, 23,206 MT, is down 17.2% from December 2015, according to Dairy Australia. July-December 2016 production, 151,811 MT, is down 10.3% from the same period of 2015. SMP exports from Australia from July-December 2016, 75,895 MT, were 19.8% lower than the same period of 2015, according to Dairy Australia. The value of the 2016 exports was 23.8% lower than for 2015 exports. The Dairy Market News International Monthly Summary and Averages for Oceania SMP in January, 2017, was $2,400, up from $1,834 one year earlier. At GDT event 181 on February 7, the all contracts price for SMP was $2,608, up 0.1%. 1.25% BUTTERFAT: 2,400 - 2,550 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