MD_DA126

     Skim Milk Powder - Oceania

     Report 7 - Released on February 14, 2019

     Skim milk powder prices in Oceania are higher. Near term SMP production is mostly committed.
     Some buyers are uncomfortably tugged between wanting assurance of future supplies but hoping
     to defer making commitments until prices might weaken a bit. Other buyers do not expect
     significant price movements in the near term, They are moving ahead with contracts.

      Australia was a significant net exporter of SMP during 2018. China and Indonesia were the
     two primary destinations for Australian SMP exports. Exports were about 12 times greater
     than imports. New Zealand was the most significant source of Australian SMP imports.
     Prices for: Oceania, All First Sales, Free on Board - Port, Conventional, and Edible Skim
     Milk Powder
     Price Range - 1.25% Butterfat; $/MT:                   2,500 - 2,700

     Information for the period February 4 - 15, 2019, issued biweekly

     Secondary Sourced Information:

     SMP exports from Australia during 2018, 156,000 MT, were down 1.1 percent from 2017,
     according to CLAL. The table below shows the top export destinations and country percent
     change comparing 2018 with 2017. Volumes exported to China and Indonesia are very similar
     and each received multiples of the volumes going to each of the other countries listed.

        Australia SMP Exports

                      % Change
                      Jan. ± Dec.
     Destination      2018/2017
     China            +13.8
     Indonesia         -7.1
     Malaysia         -14.9
     Thailand         +74.2
     Singapore        -27.0

     SMP imports to Australia during 2018, 13,000 MT, were up 59.4 percent from 2017, according
     to CLAL. New Zealand was the most significant single source of SMP. Austria and Germany
     sourced much of the increase 2017 to 2018.

     Australia SMP Imports

                      % Change
                      Jan. ± Dec.
     Origin           2018/2017
     New Zealand         +41.3
     Austria          +1,237.5
     Germany          +2,253.7
     United States       -79.6


     SMP production in New Zealand during 2018, 390,000 MT, was 3.0 percent lower than 2017.

     SMP exports from New Zealand during 2018, 362,000 MT, were down 9.6 percent from 2017,
     according to CLAL. The table below shows top export destination country percent change
     comparing 2018 with 2017. Exports to China were greater than the next four countries
     combined.

                       NEW ZEALAND SMP EXPORTS

                      % Change
                      Jan. ± Dec.
     Destination      2018/2017
     China                  -1.0
     Malaysia               -6.8
     Philippines            -2.3
     Thailand               -1.4
     Singapore             -19.0

      At GDT event 229 on February 6, the SMP all contracts price, $2,534, increased 3.9
     percent. The March contract price, $2,700, increased 2.7 percent.

     Published by:
     Dairy Market News - Madison, WI
     Eric Graf, 608.422.8590
     Email: eric.graf@ams.usda.gov

     Additional Dairy Market News Information:
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     DMN Website: https://www.ams.usda.gov/market-news/dairy
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