MD_DA127                                                         
DA                                                               
MD DA127 Whole Milk Powder - Oceania                             

MADISON, WI.  August 18, 2016 (REPORT 33)                        

OCEANIA                                                          
INFORMATION GATHERED  08/08/2016 - 08/19/2016                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

WHOLE MILK POWDER (WMP):      

Whole milk powder prices strongly increased this week. 

At GDT Event 170 on August 16, WMP prices for the September 
contract increased 19.3%, and the all contract WMP price 
increased 18.9%. Every contract period reflected strengthened 
pricing. WMP contracts accounted for a significant part of GDT 
volume. Much of the buying interest came from China and 
Southeast Asia. Another factor mentioned as supporting price 
strength is awareness of declining milk production in the EU and 
what impact that may have on WMP manufactured there, as well as 
the fact that seasonal milk production in Oceania is still a few 
months away from peak. Australia WMP production during June was 
down 73.7% from June 2015 and down 31.7% July 2015-June 2016 
compared with the same period one year earlier according to 
Dairy Australia. Australia WMP exports January-June 2016 
declined 14.1% from the same period of 2015 according to 
Eucolait. The top three export destinations and percentage of 
total exports are: China, 23.6%; Sri Lanka, 19.1%; and 
Singapore, 12.8%.
                                
                                                                 
26% BUTTERFAT:                           2,600 - 2,725  

930c Eric.Graf@ams.usda.gov 608.557.7005
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