MD_DA127                                                         
DA                                                               
MD DA127 Whole Milk Powder - Oceania                             

MADISON, WI.  July 09, 2015 (REPORT 27)                          

OCEANIA                                                          
INFORMATION GATHERED  06/29/2015 - 07/10/2015                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

WHOLE MILK POWDER (WMP):                                         
                                                                 
Prices for WMP moved significantly lower this reporting period. New 
Zealand manufacturers are attempting to lower current supply levels prior 
to the end of July, which is the close of their financial year. Demand is 
very sluggish with limited interest from China. Large volume buyers are 
purchasing hand to mouth. The impending start of the new production 
season contributes to the very weak undertone in the market. Market 
contacts have indicated that milk volumes in the coming season will be 
diverted, when possible, to manufacturing options with greater returns. 
Numerous market analysts see little upside to the market for the remains 
of 2015. 

According to GTIS, China's whole milk powder imports for May decreased 
compared to the previous month. Since January, monthly imports have 
declined each month through May. Nearly all of the supply imported into 
China came from New Zealand. January-May 2015 whole milk powder imports 
into China were 54% below year ago levels.

At the July 1 GDT event 143, the WMP pricing index, across all 
contracting periods, averaged $2,054 per MT, down 10.8% compared to the 
prior event. For contract periods 2 and 3, September and October, NZ 
regular WMP averaged $2,000 and $1,980 per MT.

26% BUTTERFAT:                           1,975 - 2,300           

0930C rick.whipp@ams.usda.gov 608.557.7004
USDA/AMS/Dairy Market News, Madison, Wisconsin
Dairy Market News website: www.ams.usda.gov/dairymarketnews
Dairy Market News database portal: http://www.marketnews.usda.gov/mnp/da-
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