Skim Milk Powder - Europe
MD DA106 Skim Milk Powder - Europe                               

MADISON, WI.  October 12, 2017 (REPORT 41)                       

WESTERN EUROPE                                                   
INFORMATION GATHERED  10/02/2017 - 10/13/2017                    
U.S. DOLLARS PER METRIC TON, FOB PORT                            


       Skim milk powder prices in Western Europe slightly weakened. Continuing 
price weakness is expected in coming weeks. This, even with lower production than 
last year at this time. Most current production is scheduled to meet contract 
obligations. The current price decline is viewed as a correction somewhat in 
response to the ending of the most recent intervention program, now that 
intervention is no longer a sales outlet. However, intervention stocks in defined 
volumes will continue to be offered. The next tender for sales of SMP from 
intervention stocks will be on October 17.
       The separate European Market Overview report in this DMN series provides a 
more extensive discussion as to possible future actions related to intervention 
and existing stocks, in the broader context of the European dairy economy. 
       Some EU SMP export strength arises from January-August Algeria import data. 
SMP imports, 113,401 MT, increased 46.6 percent from the same period one year 
earlier, according to Eucolait. The range of monthly percentage changes in 
cumulative import volumes varies from +37.5 in June, to +170 percent in January. 
Import volumes and primary origins are shown in the following table:
                      Algeria SMP Imports
                 	Main Three Origins 
                 	January-August 2017 
Origin       	Quantity(MT)   Percent of Total  
France                44,724         	      39.4
Poland                22,256                19.6
Belgium               12,372                10.9

       The Dairy Market News international monthly average price in dollars /metric 
ton for Western Europe SMP prices in September, 2017, $1,968, compares with 
$2,236 one year earlier.

1.25% BUTTERFAT:                         1,775 - 1,925          

USDA/AMS/Dairy Market News, Madison, Wisconsin
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