Global Milk Powder Markets Rebound Due to Seasonal Supply Tightening In W11 2026, the global milk powder market recorded a broad-based short-term recovery across all major exporting regions, as reflected in consistent week-on-week (WoW) and month-on-month (MoM) price increases. Despite this upward momentum, year-on-year (YoY) trends remain uneven, with whole milk powder (WMP) still under pressure while skim milk powder (SMP) has moved into a firmer growth phase. For WMP, the European Union (EU) prices rose to USD 3.94 per kilogram (kg), up 2.34% WoW and 4.23% MoM, although still down 17.23% YoY. The gains are driven by stronger short-term domestic demand, declining inventories, and stable export flows, particularly to the Middle East and North Africa (MENA). However, the sharp YoY decline reflects the lingering impact of excess milk production and weak import demand, especially from China, throughout 2025, which continues to weigh on the market base. A similar upward trend was observed in Oceania, where WMP prices averaged USD 3.75/kg, increasing by 3.31% WoW and 7.14% MoM, though remaining 5.06% below last year’s level. This growth is primarily attributed to seasonal tightening in milk supply, as the region enters the late production season, reducing exportable volumes. Additionally, strong performance in recent Global Dairy Trade (GDT) auctions has reinforced bullish sentiment, supported by renewed buying interest from key Asian markets. In South America, WMP prices reached USD 3.90/kg, rising by 2.63% both WoW and MoM, but still down 9.30% YoY. The increase is largely linked to tight spot availability and firm export demand, with many producers reportedly forward-sold through May/June, limiting near-term supply. Nevertheless, the YoY decline highlights the continued influence of weaker global demand conditions observed in 2025. For SMP, EU prices rose to USD 2.90/kg, marking a 3.20% WoW and 3.94% MoM increase, alongside a 5.84% YoY gain. This growth is supported by tight inventories, firm export demand, and a short-covering effect, where buyers re-entered the market after previously anticipating lower prices. In Oceania, SMP prices surged to USD 3.19/kg, recording the strongest gains among all regions, with an 8.14% WoW increase, an 11.54% MoM rise, and a 10.76% YoY uptick. The rise reflects tight near-term supply due to seasonal milk production declines, combined with robust demand from North and Southeast Asia, which has intensified competition for limited volumes. Meanwhile, in South America, SMP prices increased more moderately to USD 3.35/kg, up 2.13% WoW and MoM, and 3.72% YoY. The upward movement is driven by tight spot supplies, steady export demand, and seasonal production dynamics, with particularly strong buying interest from Brazilian importers seeking to replenish inventories ahead of near-term demand. More at: https://trade4go.com/weekly-product-update/w11-2026-milk-powder