MD_DA137                                                         
DA                                                               
MD DA137 Whole 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                            

WHOLE MILK POWDER (WMP):  

F.O.B. export prices for whole milk powder (WMP) in the Southern Cone 
of South America are slightly down, following the recent downward 
trend at the GDT. Manufacturing milk volumes are becoming slightly 
tight throughout the region. Consequently, WMP processing is less 
active compared to a few weeks ago. The bottom price of the range is 
reflecting moderate to heavy WMP export transactions outside the 
Mercosur bloc. Meanwhile, the top price of the range is mirroring 
export trades within the Mercosur bloc, mainly from Argentina and 
Uruguay to Brazil. Inventories are steady to slightly lower. 
According to the Ministry of Industry, Trade, and Services (MDIC), 
Brazil WMP imports from January to December 2016 totaled 126,081 MT, 
up 115% from the same period in 2015. From this total, imports from 
Uruguay and Argentina represented 68% and 27%, respectively. At the 
GDT Event 179 on January 3, whole milk powder (WMP) prices across all 
contract periods averaged $3,294 per metric ton, down 7.7% from last 
event.

26% BUTTERFAT:                         2,775 - 3,425

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