Skim Milk Powder - Oceania

     Skim Milk Powder - Oceania

     Report 37 - Released on September 12, 2019

     Oceania skim milk powder prices are higher. Early season production in Australia and New
     Zealand is still low in the seasonal arc. Even so, the price increase is slight and is
     attributed more to normal trading than to any meaningful supply and demand factor.

     Most buyers have supply expectations in line with seasonal production patterns. No
     significant price movements are expected by most observers until at least later in October
     or November, when seasonal production patters are more obvious.

     In Australia, the current emphasis is to prioritize sending milk to SMP/butter production at
     the expense of other manufactured dairy products. Even so, with lower milk production in
     Australia, SMP output remains below ideal volumes.
     Prices for: Oceania, All First Sales, Free on Board - Port, Conventional, and Edible Skim
     Milk Powder
     Price Range - 1.25% Butterfat; $/MT:                   2,525 - 2,675

     Information for the period September 2 - 13, 2019, issued biweekly

     Secondary Sourced Information:

     SMP exports from Australia January - July 2019, 83,000 MT, were down 6.9 percent from
     January - July 2018, according to CLAL.

     The table below shows the top export destinations and country percent change comparing
     January - July 2019 with January - July 2018.

           JANUARY - JULY 2019

                           % CHANGE
     DESTINATION           2019/2018    MT

     China                  +50          26,924
     Indonesia               -6          16,714
     Vietnam               +140           8,181

     At GDT event 243 on September 3, the SMP all contracts price, $2,500, increased 0.7
     percent. The September contract, $2,564, increased 0.5 percent.
     Published by:
     Dairy Market News - Madison, WI
     Eric Graf, 608.422.8590

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