MD_DA126                                                         
DA                                                               
MD DA126 Skim Milk Powder - Oceania                              

MADISON, WI.  March 16, 2017 (REPORT 11)                         

OCEANIA                                                          
INFORMATION GATHERED  03/06/2017 - 03/17/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

SKIM MILK POWDER (SMP):  

Oceania skim milk powder prices significantly declined at each 
end of the price range. This has narrowed the differential with 
European SMP prices, although Oceania prices are a bit higher 
than in Europe. 

There was increasing resistance to Oceania SMP pricing from some 
buyers who found European pricing attractive. This is believed 
to be a factor in price weakness this period. Moreover, 
increasing belief in milk production being higher than estimated 
made some buyers wary of recent pricing levels.

Australian exports of SMP from July 2016-January 2017 decreased 
17.1% from the same period one year earlier, according to Dairy 
Australia. The value of SMP exports compared with one year 
earlier declined 19.3%.

The Dairy Market News February 2017 Oceania SMP monthly average 
price per metric ton was $2,490, compared with $1,798 one year 
earlier.

At GDT Event 183 on March 7, the SMP all contracts price 
decreased 15.5% and no April contract price was reported. 

1.25% BUTTERFAT:                         2,075 - 2,300           


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