MD_DA127

     Whole Milk Powder - Oceania

     Report 13 - Released on March 26, 2020


     In Oceania whole milk powder prices are lower. While the weaker prices are disappointing to
     manufacturers and dairy producers, some industry officials noted that the weakness was less
     than recent futures markets suggested would occur. Pricing declining less than had been
     expected is attributed to an unexpected influx of increased buying interest for near term
     delivery from some countries in Southeast Asia this reporting period.

     Manufacturers have noted buying interest and requests for delivery from China are returning
     toward normal. In some instances, expedited movements through ports in China are available
     for dairy imports. However, there is still a way to go to climb back to normal. That leaves
     a downward factor on pricing for now. Current WMP pricing can be accommodated but is
     disappointing, especially in New Zealand, which is the leading global exporter of WMP.
     Pricing near or above $3,000 is typically considered a good profitability point. Oceania WMP
     prices have been trending lower since late 2019, according to CLAL data made available to
     USDA. Many would like to see a trend reversal.



     Prices for: Oceania, All First Sales, Free on Board - Port, Conventional, and Edible Whole
     Milk Powder
     Price Range - 26% Butterfat; $/MT:                     2,750 - 2,850


     Information for the period March 16 - 27, 2020, issued biweekly

     Secondary Sourced Information:


     At GDT event 256 on March 17, the WMP all contracts price, $2,797, decreased 4.2 percent.
     The April contract, $2,830, decreased 3.1 percent.




     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