In the four-week period ending 2nd September, Mintec US Skimmed Milk Powder (SMP) prices rose 9% to USD 2,436/MT, attributed to a rise in export demand from Southeast Asia. US SMP
Since April-August, roughly half of the overall dairy export growth has come from SMP to Southeast Asia and China, with July exports to the region up 30,103 tonnes, a rise of 150% from last year. This is attributed to China’sTotal exports to China continue to recover from the low levels of last year, when African swine fever decimated China’s hog herd, and reduced demand for whey for feed use. Gains in Southeast Asian market these markets have been partially offset by continued weakness in exports to Mexico amid slow economic growth, where overall export volumes trailed last year by 18% y-o-y.
The US “Phase 1” trade deal between US-China, is expected to see China to move closer to its commitment to purchase USD 80 billion in agricultural products, from the US during 2020 and 2021. As of September 2020, US agricultural exports are on the rise, expected to further support US SMP prices in the near-term.