MD_DA136 DA MD DA136 Skim Milk Powder - South America: Southern Cone MADISON, WI. February 02, 2017 (REPORT 5) SOUTH AMERICA INFORMATION GATHERED 01/23/2017 - 02/03/2017 U.S. DOLLARS PER METRIC TON, FOB PORT SKIM MILK POWDER (SMP): F.O.B. export prices for skim milk powder (SMP) in the Southern Cone of South America shifted lower on light trading. The price range is reflecting export transactions within the Mercosur bloc as well outside the zone. SMP supplies are becoming tight in the region, especially in Argentina where the recent unfavorable weather has reduced milk yields. Meanwhile, in Brazil, SMP production is active and inventories are slightly increasing in line with buyers' demand. Therefore, the stability in the Brazilian SMP market is putting some pressure on SMP import prices from nearby countries. 1.25% BUTTERFAT: 2,400 - 2,550 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