MD_DA106

     Skim Milk Powder - Europe

     Report 7 - Released on February 14, 2019

     The skim milk powder price range in Western Europe widened. This resulted from a slightly
     weaker low-end range price, as well as a stronger upper range price. Factors related to
     location, timing, sale volumes, and customer relationships, were all factors contributing to
     the outcome.

      The SMP market has slowed from the active situation early this year. Many customers have
     finalized contracts through Q1 this year. That reduces the urgency in finalizing deals.
     Negotiations for the balance of the year are ongoing, and deals are being finalized. Buying
     interest comes from internal EU customers as well as from outside the EU.

      The February 5 tender of intervention SMP offered 3,651 MT, all the remaining stocks. A
     minimum selling price of 1,622 euros/MT was set according to Eucolait. That resulted in sale
     of 584 MT. There were 7 bids ranging from 1,500 euros/MT to 1,707 euros/MT. Of the SMP
     sold, 500 MT were from Spain, and 84 MT from Finland. The next tender date is February 19
     when the remaining 3,067 MT will be available. If the remaining SMP is not sold on February
     19, March 19 will be the next opportunity.

      The Japanese entity ALIC has announced a SMP tender on February 21, with the delivery
     deadline July 31, 2019. Another SMP tender on April 25 has a September 30, 2019 delivery
     deadline. A total of 10,000 MT is scheduled between the two events.
     Prices for: Europe, All First Sales, Free on Board - Port, Conventional, and Edible Skim
     Milk Powder
     Price Range - 1.25% Butterfat; $/MT:                   2,100 - 2,425


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

     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/
     DMN Database Portal: https://www.marketnews.usda.gov/mnp/da-home