MD_DA137                                                         
DA                                                               
MD DA137 Whole Milk Powder - South America                       

MADISON, WI.  June 08, 2017 (REPORT 23)                          

SOUTH AMERICA                                                    
INFORMATION GATHERED  05/29/2017 - 06/09/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

WHOLE MILK POWDER (WMP):                                         
                                                           
In the Southern Cone of South America, whole milk powder (WMP) f.o.b. 
export prices shifted slightly up in contrast with the recent GDT 
results. With tight cream supplies in the market, WMP production have 
been limited in some processing plants. Thus, WMP inventories are 
down, while values are slightly increasing. Demand for WMP is fair to 
strong. The low end of the pricing range is mirroring moderate 
exports outside the Mercosur bloc while the high end is reflecting 
light Brazilian imports mainly from Uruguay and Argentina. In Brazil, 
WMP interest from the food processing industry is steady. Some WMP 
tenders from domestic Brazilian manufacturers can be found priced at 
or above $3,650 per metric ton.

The May 2017 Dairy Market News monthly average price per metric ton 
for WMP in the southern Cone of South America is $3,387. 

According to the Brazilian government, WMP imports from January to 
May 2017 totaled 40,865 MT, down 4% from the same period in 2016. 
From this total, imports from Uruguay, Argentina, and Chile 
represented 60%, 36%, and 4% respectively. 

At the GDT Event 189 on June 6, whole milk powder (WMP) prices across 
all contract periods averaged $3,143 per metric ton, down 2.9% from 
the last event.

26% BUTTERFAT:                           3,250 - 3,600           


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