MD_DA137                                                         
DA                                                               
MD DA137 Whole Milk Powder - South America                       

MADISON, WI.  May 25, 2017 (REPORT 21)                           

SOUTH AMERICA                                                    
INFORMATION GATHERED  05/15/2017 - 05/26/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

WHOLE MILK POWDER (WMP):                                         
                                                                 
Whole milk powder (WMP) f.o.b. export prices for the Southern Cone of 
South America WMP adjusted slightly lower to reflect the current market 
conditions inside and outside the Mercosur bloc. The low end of the 
pricing range is reflecting moderate exports to Algeria and Russia 
while the high end is mirroring light Brazilian imports from Uruguay 
and Argentina. Overall, the regional WMP supply is slightly higher due 
to a small increase in farm milk production. The general demand for WMP 
has decreased somewhat. Therefore, in order to be more competitive, WMP 
processors are slightly lowering prices. In Brazil, despite lower 
imports of powdered milk, inventories in domestic companies remain 
high. In general, the Brazilian demand for WMP is low. In this way, 
some processors have been forced to offer/sell at lower prices. Some 
WMP tenders from domestic manufacturers can be found priced at or above 
$3,600 per metric ton.

According to the National Milk Institute (INALE), Uruguay cumulative 
WMP exports from January to April 2017 totaled 30,985 tons, down 33% 
from the same period in 2016. 

At the GDT Event 188 on May 16, whole milk powder (WMP) prices across 
all contract periods averaged $3,312 per metric ton, up 1.3% from the 
last event.
26% BUTTERFAT:                           3,150 - 3,550           



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