MD_DA127                                                         
DA                                                               
MD DA127 Whole Milk Powder - Oceania                             

MADISON, WI.  May 11, 2017 (REPORT 19)                           

OCEANIA                                                          
INFORMATION GATHERED  05/01/2017 - 05/12/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

WHOLE MILK POWDER (WMP):   

      Oceania whole milk powder prices strengthened, reaching the 
highest level of the year. This keeps pricing slightly above 
pricing in Western Europe. Part of the Oceania price strength is 
attributed to expectations for milk production and pricing in 
the upcoming milk production season. This level of pricing is 
making buyers wary of committing very far into the future as 
they hope for some price relief.                                   
      New Zealand exports of WMP year to date January-March 2017 
have declined 2.5% from the same period one year earlier, 
according to Eucolait. Export volumes and primary destinations 
are shown in the following table:
 
 			New Zealand WMP Exports
			Main Three Destinations 
		   	   January-March 2017 
 
Destination  	Quantity (MT)  % of Total  
China 		98,082  		28.5% 
UAE	 		35,285  		10.2% 
Algeria		27,002  		 7.8%
 
      New Zealand is the source of almost all WMP imports by 
China. This year, January-March, France is the second highest 
source. China WMP imports declined 3.8% from the same period 
last year according to Eucolait.

      China WMP Imports
               	Main Three Origins
                    January-March 2017 
 
Origin  		Quantity (MT)  % of Total  
New Zealand	185,051  		94.8% 
Australia		  5,080  		 2.6% 
United States	  2,411  		 1.2%


      The Dairy Market News April 2017 Oceania WMP monthly 
average price per metric ton was $3,031, compared with $2,039 
one year earlier.
      At GDT Event 187 on May 2, the WMP all contracts price 
increased 5.2% and the June contract price increased 4.3%.                                        


26% BUTTERFAT:                           3,100 - 3,300           


                                                                                                       
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