The European Commission has agreed to release a portion of its intervention stocks back into the market. It has been reported that they will release up to 143 million lbs. of SMP and 55 million lbs. of butter. These stocks will be sold through tenders, with the first round of bids due by June 1, 2010.

It seems has though Europe’s action has reined in some of the enthusiasm in the  U.S. milk powder market. USDA’s Dairy Market News reported that western NDM has been trading for $1.26 - $1.32 this week, which is unchanged from last week after 10 previous straight weeks of gain. Spot NDM (Grade A) has dropped 3.5 cents and NDM futures were 1 to 2 cents lower.