MD_DA126                                                         
DA                                                               
MD DA126 Skim Milk Powder - Oceania                              

MADISON, WI.  May 23, 2013 (REPORT 21)                           

OCEANIA                                                          
INFORMATION GATHERED  05/13/2013 - 05/24/2013                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

SKIM MILK POWDER (SMP):  Oceania SMP prices are mostly steady.  
Higher prices were noted at the top end, reflecting nearby gDT 
auction results.  Pricing levels are at relatively high levels 
when compared to prices in other world regions.  Offering 
volumes are limited.  Production trends are moving seasonally 
lower, reflective of the reduced milk supplies.  Buyer demand is 
uneven.  Some buyers are still seeking coverage for country 
specified needs, whereas others are in a more covered position.  
Traders and handlers generally have holdings to fill current and 
contracted volumes.  There remains a sizeable price gap between 
NZ medium heat SMP prices and prices for U.S. and European SMP.  
For July sales, the gap moved higher from the last trading 
session, now listed at $1,355/MT for U.S. MH SMP and $1,490/MT 
for E.U. MH SMP.  At the May 15 gDT event, SMP for all 
contracting periods averaged $4,252 per MT, down 2.8%.  For the 
nearby trading in contract period 2, (July 2013), prices 
averaged $5,330 for NZ sourced medium heat product.  
                                                                 
1.25% BUTTERFAT:                         4,200 - 5,350           
                                                                                                           
0930c Butch Speth Butch.Speth@ams.usda.gov 608.278.4152