MD_DA136                                                         
DA                                                               
MD DA136 Skim Milk Powder - South America: Southern Cone                               
                               
MADISON, WI. January 5, 2016 (REPORT 1)                                                

SOUTH AMERICA: SOUTHERN CONE
INFORMATION GATHERED  12/26/2016 - 1/6/2017                     
U.S. DOLLARS PER METRIC TON, FOB PORT                            

SKIM MILK POWDER (SMP): 

In the Southern Cone of South America, skim milk powder (SMP) 
f.o.b. exporting pricing is shifting up, in line with the recent 
upward trend at the GDT. The top price of the range is mirroring 
export trading outside the Mercosur bloc, while the bottom price 
is reflecting Brazilian import transactions within the bloc, 
mainly from Argentina and Uruguay. SMP demand from the food 
processing industry is fair to strong. With lower condensed skim 
supplies throughout the region, SMP output has been somewhat 
irregular. Inventories are mixed throughout the region. 
According to the Ministry of Industry, Trade, and Services 
(MDIC), Brazil SMP imports from January to December 2016 totaled 
35,405 MT, up 2% from the same period in 2015. From this total, 
imports from Uruguay, Argentina, and United States represented 
40%, 42%, and 18% respectively. At the GDT Event 179 on January 
3, skim milk powder (SMP) prices across all contract periods 
averaged $2,660 per metric ton, up 2.3% from last event.
                                                                
1.25% BUTTERFAT:                         2,250 - 2,500           


930CT Angel.Teran@ams.usda.gov 608-557-7011
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