MD_DA126 Skim Milk Powder - Oceania Report 3 - Released on January 17, 2019 Prices for SMP in Oceania firmed and lead prices in the EU. Buyers are actively seeking SMP from Oceania. SMP production in Oceania has begun a seasonally normal decline during the downward side of the milk season. This is believed to be a contributing factor to price firming. Another factor is the milk draw from WMP manufacturers to maintain as much WMP production as they can. Buyers are also apprehensive about possible SMP supply tightness overall, taking a cue from the recent rapid drawdown of EU intervention SMP. That recent development rings like a bell which still echoes through buyer discussions in Oceania. Australia was a significant net exporter of SMP through November 2018. China and Indonesia were the two primary destinations for Australian SMP exports. Exports were nearly 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: 2,325 - 2,650 Information for the period January 7 - 18, 2019, issued biweekly Secondary Sourced Information: SMP exports from Australia January-November 2018 were down 1.2 percent from January-November 2017, according to CLAL. The table below shows the top export destinations and country percent change comparing January-November 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 four countries listed. Australia SMP Exports % Change Destination Jan.-Nov. 2018/2017 China +10.8 Indonesia -7.9 Malaysia -21.2 Thailand +78.5 Singapore -27.0 Japan -53.7 SMP imports to Australia January-November 2018 were up 62.2 percent from January-November 2017, according to CLAL. New Zealand was the most significant source, with volumes up 50.7 percent. SMP imports by China January-November 2018 increased 10.5 percent from January-November 2017, according to CLAL. New Zealand supplies China with slightly more SMP than the next six countries shown in the table below combined, but the dominance is less substantial than with WMP and butter. The table below shows the top import origins and country percent change comparing January-November 2018 with 2017. China SMP Imports % Change Origin Jan.-Nov. 2018/2017 New Zealand +8.5 Australia +2.7 United States -15.9 Germany -18.4 Finland +22.6 France -17.8 Sweden +15.7 SMP imports by Japan January-November 2018 decreased 5.9 percent from January-November 2017, according to CLAL. New Zealand and Australia dominate the top three sources, supplying nearly three times as much SMP as the United States. The table below shows the top import origins and country percent change comparing January-November 2018 with 2017. Japan SMP Imports % Change Origin Jan.-Nov. 2018/2017 New Zealand -17.4 United States -7.1 Australia +23.7 Belgium -60.6 France -1.4 At GDT event 228 on January 15, the SMP all contracts price, $2,405, increased 10.3 percent. The February contract price, $2,643, increased 10.6 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: http://www.ams.usda.gov/market-news/dairy DMN Database Portal: http://www.marketnews.usda.gov/mnp/da-home