Global Non-fat Dry Milk Markets Under Pressure
GLOBAL - Further analysis of February’s non-fat dry milk (NDM) trade data indicates that the US is facing increased competition in Southeast Asia, which may be forcing US exporters to shift efforts to other regions, writes Mary Ledman, Sara Dorland, Sarina Sharp and Karen Endres on 16 February 2012.
17 April 2012
2 minute read
Year to date, the top ten
export partners account for 87 per cent of
US NDM/ skimmed milk powder (SMP) exports. While the top
four trade partners remain consistent:
Mexico, Indonesia, Philippines and
Vietnam.
Exports to all but Mexico are
trending lower vs. last year (see chart).
Meanwhile exceptionally strong exports
to Mexico and Egypt in 2012, up 56 per cent
and 66 per cent respectively, have kept US
NDM/SMP exports positive vs. last year.
However, more SMP may be
available on the global market. Last
year the Indian government banned
exports of SMP and casein to ease
domestic prices. In addition, India
imported 50,000 tons of SMP to
enhance supply. With 2012 milk
production forecasted at 127 million
tons, up more than 4.5 per cent vs. last year,
manufacturers want the ban lifted.
Indian SMP stocks are estimated near
100,000 tons or over 220 million lbs.
These stocks are currently not available
to the world market; however, if the
ban is lifted then a portion of these
stocks would be readily available to
global buyers. This suggests US NDM/
SMP exporters may experience more
competition in the coming months.
CME spot Cheddar barrel trading
was active today with seven trades
while there was just a single bid in the
block market. The CME Cheddar block
and barrel prices settled unchanged
at $1.4875/lb. and $1.4600/lb.,
respectively. CME spot butter closed
today unchanged at $1.4250/lb., with
one below the market bid left on the
board. CME spot NDM markets were
offered lower again with both settling
down 1.5¢. CME Grade A NDM closed
at $1.1775/lb. and extra-grade NDM
settled at $1.1675/lb.
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