MD_DA137                                                         
DA                                                               
MD DA137 Whole Milk Powder - South America                       

MADISON, WI.  June 22, 2017 (REPORT 25)                          

SOUTH AMERICA                                                    
INFORMATION GATHERED  06/12/2017 - 06/23/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

WHOLE MILK POWDER (WMP):                                         
                                                                 
Whole milk powder (WMP) f.o.b. export prices adjusted slightly lower 
in line with the recent GDT results for all WMP contracts. WMP 
processing is more active, mainly influenced by greater milk volumes 
for drying in the region. As a result, stocks are building and values 
declining. Within the Mercosur bloc, WMP demand is weakening, mainly 
from Brazil, as their milk yields are improving. This is reflected on 
the top of the pricing range. Meanwhile, the interest for Argentinian 
and Uruguayan WMP from Algeria and Russia is fair to good, mirrored 
on the bottom of the price range. 

Meanwhile, some manufacturers' WMP tenders within the Brazilian 
market can be found priced at or above $3,600 per metric ton, down 
$50/MT from the last two weeks, on a bearish domestic market. It is 
important to mention that this price is not included in the pricing 
range, since it only reflects the internal Brazilian market.

At the GDT Event 190 on June 20, whole milk powder (WMP) prices 
across all contract periods averaged $3,022 per metric ton, down 3.3% 
from the last event.

26% BUTTERFAT:                           3,225 - 3,575                                                             


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