MD_DA136                                                         
DA                                                               
MD DA136 Skim Milk Powder - South America: 
                               
MADISON, WI.  February 16, 2017 (REPORT 7)                       

SOUTH AMERICA                                                    
INFORMATION GATHERED  02/06/2017 - 02/17/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

SKIM MILK POWDER (SMP): 

In the Southern Cone of South America, f.o.b. export prices for 
skim milk powder (SMP) shifted higher on light to moderate 
trading. With a shortage of milk in the region, SMP production 
has been irregular, while inventories continue tightening. The 
market undertone is firm as the current demand is above SMP 
supply. Thus, the Brazilian market is paying higher premiums, 
reflected on the top of the range. Meanwhile, export 
transactions outside the Mercosur block are mirrored on the 
bottom of the range. According to the Ministry of Industry, 
Trade, and Services (MDIC), Brazil SMP imports during January 
2017 totaled 4,511 MT, up 87% from the same month in 2015. From 
this total, imports from Uruguay, Argentina, and United States 
represented 60%, 25%, and 15% respectively. At the GDT Event 180 
on February 7, skim milk powder (SMP) prices across all contract 
periods averaged $2,608 per metric ton, up 0.1% from the last 
event. 


1.25% BUTTERFAT:                         2,525 - 2,725           


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