MD_DA127                                                         
DA                                                               
MD DA127 Whole Milk Powder - Oceania                             

MADISON, WI.  September 15, 2016 (REPORT 37)                        

OCEANIA                                                          
INFORMATION GATHERED  09/05/2016 - 09/16/2016                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

WHOLE MILK POWDER (WMP):   

Whole milk powder prices strengthened at each end of the price 
range but more at the lower end. WMP prices are now at the 
highest level of 2016. Some market participants believe the 
recent string of price increases in recent weeks leading to this 
point may be a market leading fundamentals, but the market has 
been trending up nevertheless. WMP is perhaps the most important 
single dairy product exported from the region. WMP also 
significantly influences the farmgate milk pay price of a large 
dairy processor in New Zealand. Thus, recent price strength for 
WMP is especially welcome, not only for the per se impact on WMP 
processing, but the formulaic impact on future milk pay prices. 
WMP production in Australia during July was down 59.9% from July 
2015, the first month of the new production season, according to 
Dairy Australia. Australia WMP exports January-July 2016 
decreased 5.4% from the same period of 2015 according to 
Eucolait. The top three export destinations and percentage of 
total exports are: China, 22.7%; Sri Lanka, 17.5%; and 
Singapore, 12.7%. GDT event 171 on September 6 yielded WMP 
prices for the October 2016 contract up 4.4% and for all 
contracts up 3.7%.
  
26% BUTTERFAT:                           2,750 - 2,950   

930c 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