SKIM MILK POWDER (SMP): Prices for skim milk powder moved slightly
higher on the upper end of the range. The market is stable as production
is being moderated, due to lower milk intakes in countries over quota.
Export demand has increased, prompted in part by competitive pricing
caused by the weaker European currency. A majority of Q1 supplies are
committed. Though prices are near the intervention level, contacts
report that it is unlikely supplies will be offered to intervention in
the near term. The results of a high volume tender are being eagerly
anticipated and will give increased clarity to current market trends.
The market undertone is steady to firm. PSA stock levels through January
4 amounted to 17,342 MT with Germany accounting for over 50% of the
volume in storage. November import data from China showed an increase in
exports of SMP from France going to China.