MD_DA137                                                         
DA                                                               
MD DA137 Whole Milk Powder - South America                       

MADISON, WI.  March 16, 2017 (REPORT 11)                         

SOUTH AMERICA                                                    
INFORMATION GATHERED  03/06/2017 - 03/17/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

WHOLE MILK POWDER (WMP):                                         
                                                                 
In the Southern Cone of South America, there are very short supplies 
of condensed milk moving into whole milk powder (WMP) production. 
Demand for WMP is strong, but stocks are too low to meet buyers/end 
users' needs. As a result, buyers are paying higher premiums for WMP. 
Thus, WMP f.o.b. export prices shifted higher, contrary to the recent 
downward movements at the GDT. The strong Brazilian currency is 
making WMP imports from other countries within the Mercosur bloc more 
accessible. However, regional WMP trading activity is limited to 
supply availability. In the Brazilian market, some WMP tenders from 
manufacturers can be found priced above $3,550 per metric ton. 

According to the Ministry of Industry, Trade, and Services (MDIC), 
Brazil WMP imports during January to February 2017 totaled 18,039 MT, 
up 261% from the same period in 2016. From this total, imports from 
Uruguay, Argentina, and Chile represented 56%, 37%, and 7% 
respectively. 

 At the GDT Event 183 on March 7, whole milk powder (WMP) prices 
across all contract periods averaged $2,782 per metric ton, down 
12.4% from the last event.

26% BUTTERFAT:                           2,975 - 3,475   


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