MD_DA127                                                         
DA                                                               
MD DA127 Whole Milk Powder - Oceania                             

MADISON, WI.  May 09, 2013 (REPORT 19)                           

OCEANIA                                                          
INFORMATION GATHERED  04/29/2013 - 05/10/2013                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            

WHOLE MILK POWDER (WMP):  Oceania whole milk powder prices moved 
lower this reporting period.  Following months of price buildup 
to historically high levels, the easing of the market prices is 
bringing still more questions than answers.  Has the market 
reached the top?  Did the fact that the May 1 holidays in 
several countries stifle normal demand?  Have buyers reached to 
other countries for supplies?  The production season is winding 
down in a tighter and quicker fashion than projected.  The end 
of season volumes are lighter than thought because of the 
drought in the North Island of New Zealand and general dry 
conditions in other dairy regions of Oceania.  Supplies of WMP 
are expected to remain tight into the new season.  Demand slowed 
at the higher prices and buyers are in tune with the market as 
they assess the declining pricing levels.  At the May 1 gDT 
event, the WMP pricing index, across all contracting periods 
averaged $4,721 per MT, down 10.2%.  Contract 2 (July 2013) 
pricing averaged $6,001 per MT, down 4.8%. 
                                                               
26% BUTTERFAT:                           4,800 - 5,500           
                                                   

0930c Butch Speth Butch.Speth@ams.usda.gov 608.278.4152