MD_DA126                                                         
DA                                                               
MD DA126 Skim Milk Powder - Oceania                              

MADISON, WI.  October 12, 2017 (REPORT 41)                       

OCEANIA                                                          
INFORMATION GATHERED  10/02/2017 - 10/13/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

SKIM MILK POWDER (SMP):   

       Oceania skim milk powder prices moved to a wider price range. 
Prices at the bottom of the price range slightly weakened, while 
rising at the top. This reflects the inclination of some buyers to 
hold back for pricing they prefer, while some other buyers scramble 
to add stocks for short term needs, or seek SMP from certain sources 
or locations. Overall there is plenty of SMP available and 
timing/location factors are attributed for the top of range price 
increase.
       January-August Australian SMP exports, 104,780 MT, declined 0.9 
percent from the same period one year earlier, according to Eucolait. 
The range of monthly percentage changes in cumulative export volumes 
varies from -24.5 percent in April, to -0.8 percent in July. Export 
volumes and primary destinations are shown in the following table:
 
  		           Australia SMP Exports
                 	Main Three Destinations 
                 	January-August 2017 
 
Destination       	Quantity(MT)   Percent of Total  
Indonesia             23,161         	      21.8 
China                 22,685                21.3 
Malaysia              13,983                13.2

       January-August New Zealand SMP exports, 239,537 MT, declined 
14.6 percent from the same period one year earlier, according to 
Eucolait. The range of monthly percentage changes in cumulative 
export volumes varies from -22.9 percent in February, to -7.9 percent 
in January. Export volumes and primary destinations are shown in the 
following table:
  		
                      New Zealand SMP Exports
                 	Main Three Destinations 
                 	January-August 2017 
 
Destination       	Quantity(MT)   Percent of Total  
China                 68,958         	      28.8
Malaysia              22,638                 9.5 
Philippines           18,610                 7.8

       January-August China SMP imports, 184,676 MT, increased 29.2 
percent from the same period one year earlier, according to Eucolait. 
The range of monthly percentage changes in cumulative import volumes 
varies from -2.0 percent in January, to +29.2 percent in August. 
Import volumes and primary origins are shown in the following table:
  		
                      China SMP Imports
                 	Main Three Origins 
                 	January-August 2017 
 
Origin       	      Quantity(MT)   Percent of Total  
New Zealand           91,053         	      49.3
Australia             23,083                12.5
USA                   17,667                 9.6  

       January-August Japan SMP imports, 33,402 MT, increased 53.0 
percent from the same period one year earlier, according to Eucolait. 
The range of monthly percentage changes in cumulative import volumes 
varies from -23.9 percent in January, to +53.0 percent in August. 
Import volumes and primary origins are shown in the following table:
  		
                      Japan SMP Imports
                 	Main Three Origins
                 	January-August 2017 
 
Origin       	      Quantity(MT)   Percent of Total  
New Zealand           14,064         	      42.1	
USA                    5,438                16.3  
Australia              4,993                15.0
  
       At GDT Event 197 on October 3, the SMP all contracts price, 
$1,895, decreased 1.4 percent. The November contract, $2,052, 
increased 6.0 percent. 
       The Dairy Market News international monthly average price in 
dollars/metric ton for Oceania SMP prices in September, 2017, $1,944, 
compares with $2,344 one year earlier.
                                     
                                                                 
1.25% BUTTERFAT:                         1,825 - 2,050  



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