MD_DA127                                                         
DA                                                               
MD DA127 Whole 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                            

WHOLE MILK POWDER (WMP):   

	Whole milk powder prices in Oceania weakened, to the surprise of 
many observers. Current export activity has increased from late 
summer. The tightness of milk supplies in China has led to more 
interest from China in acquiring WMP. As the most significant 
regional dairy commodity, the weakness in WMP pricing is of concern, 
although current pricing is generally still profitable but not as 
profitable as is desired by most manufacturers.
       January-August Australian WMP exports, 32,720 MT, declined 24.6 
percent from the same period one year earlier, according to Eucolait. 
The range of monthly percentage changes in cumulative export volumes 
varies from -24.6 percent in August, to +14.6 percent in February. 
Export volumes and primary destinations are shown in the following 
table:
 
  		           Australia WMP Exports
                 	Main Three Destinations 
                 	January-August 2017 
 
Destination       	Quantity(MT)   Percent of Total  
China               	 8,728          	      25.4 
Sri Lanka              5,060                14.7 
Singapore              4,448                13.0

       January-August New Zealand WMP exports, 824,929 MT, declined 0.2 
percent from the same period one year earlier, according to Eucolait. 
The range of monthly percentage changes in cumulative export volumes 
varies from -11.8 percent in January, to +1.1 percent in July. Export 
volumes and primary destinations are shown in the following table:
  		
                      New Zealand WMP Exports
                 	Main Three Destinations 
                 	January-August 2017 
 
Destination       	Quantity(MT)   Percent of Total  
China                 244,413         	      29.6
Algeria                76,467                9.3 
UAE                    69,656                8.4

       January-August China WMP imports, 370,035 MT, increased 10.5 
percent from the same period one year earlier, according to Eucolait. 
The range of monthly percentage changes in cumulative import volumes 
varies from -10.0 percent in January, to +10.5 percent in August. 
Import volumes and primary origins are shown in the following table:
  		
                      China WMP Imports
                 	Main Three Origins 
                 	January-August 2017 
 
Origin       	Quantity(MT)   Percent of Total  
New Zealand           350,159         	      94.6
France                  6,633                1.8  
Australia               5,823                1.6

       January-August Algeria WMP imports, 181,340 MT, increased 23.7 
percent from the same period one year earlier, according to Eucolait. 
The range of monthly percentage changes in cumulative import volumes 
varies from +23.7 percent in August, to +72.0 percent in April. 
Import volumes and primary origins are shown in the following table:
  		
                      Algeria WMP Imports
                 	Main Three Origins
                 	January-August 2017 
 
Origin       	Quantity(MT)   Percent of Total  
New Zealand           115,881         	      63.9
Netherlands            21,453               11.8
France                 10,475                5.8

       At GDT Event 197 on October 3, the WMP all contracts price, 
$3,037, decreased 2.7 percent. The November contract, $3,135, 
decreased 3.2 percent. 
       The Dairy Market News international monthly average price in 
dollars /metric ton for Oceania WMP prices in September, 2017, 
$3,130, compares with $2,858 one year earlier.

                                      
                                                                 
26% BUTTERFAT:                           3,000 - 3,150          



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-
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