MD_DA137                                                         
DA                                                               
MD DA137 Whole Milk Powder - South America                       

MADISON, WI.  March 02, 2017 (REPORT 9)                          

SOUTH AMERICA                                                    
INFORMATION GATHERED  02/20/2017 - 03/03/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

WHOLE MILK POWDER (WMP):                                            
Whole milk powder (WMP) f.o.b. export prices in the Southern Cone of 
South America are lower, in line with recent downward trends at the 
GDT. The bottom price of the range is reflecting moderate WMP export 
trades from Argentina/Uruguay to Algeria and Russia. The top of the 
range is mirroring active Brazilian WMP imports from some countries 
within the Southern Cone. The strong Brazilian currency is supporting 
import trades. In the Southern Cone, WMP production is trending down, 
driven by lower regional milk output and a strong demand for milk 
fat. Nevertheless, WMP inventories are more than sufficient to meet 
manufacturing needs within the Mercosur bloc. In Brazil, WMP interest 
from food processors seems to be steady to light. According to the 
National Milk Institute (INALE), Uruguay WMP exports in January 2017 
totaled 9,329 MT, up 189% from the same period in 2016. At the GDT 
Event 182 on February 21, whole milk powder (WMP) prices across all 
contract periods averaged $3,189 per metric ton, down 3.7% from the 
last event. 

26% BUTTERFAT:                           2,850 - 3,450           


1100CT 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