MD_DA126                                                         
DA                                                               
MD DA126 Skim Milk Powder - Oceania                              

MADISON, WI.  March 30, 2017 (REPORT 13)                         

OCEANIA                                                          
INFORMATION GATHERED  03/20/2017 - 03/31/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

SKIM MILK POWDER (SMP):     

      Skim milk powder prices in Oceania weakened at each end of 
the price range. Intervention stocks in the EU as well as U.S. 
stocks of nonfat dry milk, are contributing to this being a 
buyers' market. Additionally, new intervention purchases in the 
EU are considered to be a distinct possibility. There is limited 
ability for sellers to move prices up with all the sourcing 
options open to buyers. New concerns being voiced are that U.S. 
milk volumes may shift even more into NDM production because 
U.S. cheese production, now with record stocks in cold storage, 
may be nearing reasonable limits of storage capacity.                                   

      New Zealand exports of SMP during February 2017 declined 
21.8% from February one year earlier, according to Eucolait. 
Export volumes and primary destinations are shown in the 
following table:

Main Three Destinations 
Jan-Feb 2017 

Destination  	Quantity  % of Total  
China 		20,472  	26.4% 
Philippines 	 8,885  	11.5% 
Malaysia 		 6,559  	 8.5%

      At GDT Event 184 on March 21, the SMP all contracts price 
decreased 10.1%, no April contract price was reported, and the 
May price declined 13.5%. 

1.25% BUTTERFAT:                         1,950 - 2,025            


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