MD_DA137                                                         
DA                                                               
MD DA137 Whole Milk Powder - South America                       

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                            

WHOLE MILK POWDER (WMP):                                         
                                                                 
F.O.B. export prices for whole milk powder (WMP) in the Southern Cone 
of South America are mixed on a narrower range. Trading activity has 
been light as WMP inventories are becoming tight in the region. In 
Argentina, WMP processing is down due to lower manufacturing milk 
volumes triggered by recent floods. With reduced milk volumes, 
several processors are prioritizing cheese production over WMP. 
Conversely, WMP output is active in Uruguay and Brazil. The strong 
domestic WMP production in Brazil is reducing the need to import from 
nearby countries. Brazilian demand for WMP is improving and the 
national market is showing stability. Thus, WMP Brazilian processors 
continue building stocks, anticipating higher selling prices in the 
future. Some WMP tenders from Uruguayan manufacturers to Brazil can 
be found priced at $3,500/MT or slightly above. 

26% BUTTERFAT:                           2,800 - 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