MD_DA126

     Skim Milk Powder - Oceania

     Report 45 - Released on November 05, 2020


     The Oceania skim milk powder price range continues the recent trend of moving lower. Most
     dairy powders in Oceania moved lower this period. Slower buying from China and some other
     countries was a factor. Some buyer nervousness has been noted. Another factor mentioned was
     recent sales of SMP by India which increased competition. The lower prices further reduce
     the profitability of making SMP. Production remains seasonally active because contracts need
     to be met. However, extra seasonally declining milk is less likely to be called to SMP
     plants at current price levels.

     Prices for: Oceania, All First Sales, Free on Board - Port, Conventional, and Edible Skim
     Milk Powder
     Price Range - 1.25% Butterfat; $/MT:                   2,725 - 2,850


     Information for the period October 26 -  November 6, 2020, issued biweekly

     Secondary Sourced Information:


     At GDT event 271 on November 3, the SMP all contracts price, $2,722, decreased 4.4 percent.
     The December contract, $2,748, decreased 4.8 percent.

     SMP exports from New Zealand January � September 2020, 244,000 MT, decreased 4.8 percent
     from January � September 2019 according to CLAL data made available to USDA.




     Published by:
     Dairy Market News - Madison, WI
     Eric Graf, 608.422.8590
     Email: Eric.Graf@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 (My Market News): https://mymarketnews.ams.usda.gov