MD_DA126                                                         
DA                                                               
MD DA126 Skim Milk Powder - Oceania                              

MADISON, WI.  July 20, 2017 (REPORT 29)                          

OCEANIA                                                          
INFORMATION GATHERED  07/10/2017 - 07/21/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

SKIM MILK POWDER (SMP):                                          
                                                                 
       Skim milk powder prices in Oceania weakened. Continuing comments 
about the impact of EU SMP stocks on global pricing reflect the 
frustration of SMP manufacturers in Oceania. SMP prices in Oceania 
are currently below prices during a number of weeks in 2017 and 2016. 
Manufacturers seem resigned to slogging forward for the immediate 
future.
       This year, January-May, Australia SMP exports, 62,627 MT, 
decreased 21.0 percent from the same period one year earlier, 
according to Eucolait. January-May, the range of percentage changes 
year to date in cumulative export volumes is from -0.1 percent in 
January, to -23.3 percent in April.
Export volumes and primary destinations are shown in the following 
table:

  		 Australia SMP Exports
		 Main Three Destinations 
		 January-May 2017 
 
Destination     Quantity(MT)   Percent of Total  
Indonesia          14,252         23.1 
China              11,824         19.2 
Malaysia            6,502         10.5

China has increased SMP imports this year. Unlike the dominance of 
Oceania in supplying China with butter, WMP and SMP, Oceania sources 
barely over one half of China SMP imports. January-May China SMP 
imports, 110,722 MT, increased 11.8 percent from the same period one 
year earlier, according to Eucolait. January-May, the range of 
percentage changes year to date in cumulative export volumes is from  
-2.0 percent in January, to +11.8 percent in May. 
       Import volumes and primary origins are shown in the following 
table:
  		 China SMP Imports
		 Main Three Origins 
		 January-May 2017 
 
Origin          Quantity(MT)   Percent of Total  
New Zealand     58,616         52.9 
U.S.A.          11,329         10.2 
Germany         10,984         9.9

       At GDT Event 192 on July 18, the SMP all contracts price 
decreased 3.2 percent.

1.25% BUTTERFAT:                         2,025 - 2,075           

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