MD_DA136                                                         
DA                                                               
MD DA136 Skim Milk Powder - South America 

MADISON, WI.  August 17, 2017 (REPORT 33)                        

SOUTH AMERICA                                                    
INFORMATION GATHERED  08/07/2017 - 08/18/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

SKIM MILK POWDER (SMP): 

With farm milk production improving across the Southern Cone, 
manufacturing milk volumes are more available. Thus, SMP 
production has been more active compared to one month ago. SMP 
inventories are building while premiums are declining. The 
Brazilian food industry is depending less on imports from 
Argentina and Uruguay. Therefore, throughout the past two weeks, 
f.o.b. export prices for skim milk powder (SMP) shifted down in 
the region as most processors are trying to become more 
competitive in the market while others want to move some stocks 
outside storage. Overall, interest for SMP from various market 
channels is weakening.  

According to the Brazilian government, SMP imports from January 
to July 2017 totaled 16.9 million tons, down 3 percent from the 
same period in 2016. From this total, imports from Uruguay, 
Argentina, and United States represented 42, 39, and 13 percent, 
respectively. 

At the GDT Event 194 on August 15, skim milk powder (SMP) prices 
across all contract periods averaged $1,968 per metric ton, up 
0.3 percent from the last event.

1.25% BUTTERFAT:                         2,650- 2,950


930CT AJ Teran Angel.Teran@ams.usda.gov 608.422.8593
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