MD_DA126 Skim Milk Powder - Oceania Report 13 - Released on March 28, 2019 Skim milk powder prices in Oceania are lower. Spot market interest for current delivery has slowed. Various factors are mentioned. First, many buyers are set with contracts. Second, Oceania pricing is enough higher than Western European pricing that some buyers are looking toward Western Europe. Finally, currently available stocks are a bit beyond near term spot market needs. Oceania SMP production has been seasonally declining, resulting in less milk being available for dairy manufacturing. Moreover, available milk is being drawn to other products, especially WMP, where contracts remain to be filled and pricing is strengthening. Except for buyers who need to cover right away, many buyers are standing back in many cases, believing that current SMP price weakness may offer better deals in coming weeks. SMP exports from Australia during January 2019, 19,000 MT, were up 86.0 percent from January 2018, according to CLAL. Some observers caution against excessive exuberance over the magnitude of the percentage increase. One month, especially January, is easily skewed by large buyers who were waiting until the new year to commit to new purchases. Capacity, timing, and current seasonal milk production will keep annual exports of SMP far closer to recent year totals than to the January percentage results. Prices for: Oceania, All First Sales, Free on Board - Port, Conventional, and Edible Skim Milk Powder Price Range - 1.25% Butterfat; $/MT: 2,375 - 2,575 Information for the period March 18 - 29, 2019, issued biweekly Secondary Sourced Information: SMP exports from Australia during January 2019, 19,000 MT, were up 86.0 percent from January 2018, according to CLAL. Some observers caution against excessive exuberance over the magnitude of the percentage increase. One month, especially January, is easily skewed by large buyers who were waiting until the new year to commit to new purchases. Capacity, timing, and current seasonal milk production will keep annual exports of SMP far closer to recent year totals than to the January percentage results. The table below shows the top export destinations and country percent change comparing January 2019 with January 2018. Australia SMP Exports January 2019/January 2018 % Change Jan. Destination 2019/2018 China +99.7 Indonesia +4.6 Malaysia +155.0 At GDT event 232 on March 19, the low, medium and high heat SMP all contracts price, $2,405, decreased 2.4 percent. The April contract, $2,586, decreased 10.4 percent. Published by: Dairy Market News - Madison, WI Eric Graf, 608.422.8590 Email: eric.graf@ams.usda.gov Additional Dairy Market News Information: Dairy Market News (DMN) by Phone: (608)422-8602 DMN Website: https://www.ams.usda.gov/market-news/dairy DMN MARS (MyMarketNews): https://mymarketnews.ams.usda.gov/