Skim milk powder prices declined this period with many market participants uncertain of various market factors. Some observers are anticipating the likelihood of more downside than upside to the market in the short term. Global supplies are increasing as SMP production is active in Europe and the U.S. with production beginning to increase in Oceania. Current available supplies in Oceania are fairly tight as inventories have been worked lower over the carryover period. Negotiations are ongoing for Q3 supplies. some buyers are seeking to lock in some long term contracts at current levels, but manufacturers are hesitant to enter contracts extending into 2015.