MD_DA126                                                         
DA                                                               
MD DA126 Skim 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                            

SKIM MILK POWDER (SMP):  Pricing trends for Oceania SMP are 
lower, reversing the upward direction of recent months.  The 
market tone is tending to be unsettled.  Demand has backed off 
with buyers having coverage or less willing to hold SMP at 
current prices.  The price corrections are welcomed by buyers, 
yet the questions remain on current availability of additional 
powder and what demand has been idled because of the pricing 
levels.  Drying schedules are seasonally lower and are 
additionally affected by lower milk receipts caused by the past 
dry conditions.  Traders and handlers are strategically working 
holdings to service sales on the books.  Offerings are 
seasonally light.  The pricing gap between NZ medium heat SMP 
and for U.S. and European SMP continues to narrow.  For July 
sales, the gap is now $995/MT for U.S. MH SMP and $1,185/MT for 
E.U. MH SMP.  At the May 1 gDT event, SMP for all contracting 
periods averaged $4,280 per MT, down 9.5%.  For the nearby 
trading in contract period 2, (July 2013), prices averaged 
$5,110 for NZ sourced medium heat product.  
                                                                                                             
1.25% BUTTERFAT:                         4,200 - 5,200           
                                                                        
0930c Butch Speth Butch.Speth@ams.usda.gov 608.278.4152