MD_DA106

     Skim Milk Powder - Europe

     Report 3 - Released on January 17, 2019

     European skim milk powder prices increased. However, prices lag Oceania SMP prices. The
     market undertone is firmer.

      Some observers note that is not always the situation early in a year. It is distinctly the
     situation this year. Demand is brisk. The recent interest in acquiring intervention stocks
     characterizes the overall market firmness. Fresh SMP isn¶t as available as some buyers would
     like. In coming months milk availability for making SMP may decrease as prioritization sends
     more milk to cheese plants. That portends constricted SMP supplies and upward price
     pressure.

      The results of SMP tender 30, which closed January 8, 2019, cleared all but 22,000 MT of
     SMP held as intervention stocks according to Eucolait. A total of 80,242 MT sold at a
     minimum selling price of 1554 euros/MT. The high end of bids was 1,676 euros/MT. The
     deadline to bid on the remaining tender SMP is January 22, 2019.

      The current focus for EU SMP manufacturers is exports. Internal EU demand for SMP is less
     active than for exports outside the EU.
     Prices for: Europe, All First Sales, Free on Board - Port, Conventional, and Edible Skim
     Milk Powder
     Price Range - 1.25% Butterfat; $/MT:                   2,025 - 2,200


     Information for the period January 7 - 18, 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: http://www.ams.usda.gov/market-news/dairy
     DMN Database Portal: http://www.marketnews.usda.gov/mnp/da-home