FAO Dairy Price Index

The FAO Dairy Price Index averaged 127.7 points in July, virtually unchanged from June, standing 8.6 points (7.2 percent) above its corresponding value a year ago, as decreases in the indices for milk powders nearly offset increases in those of butter and cheese. World price quotations for milk powders decreased in July, underpinned by slack import demand, especially for spot supplies, partly due to the summer lull in market activities in Western Europe, despite tight inventories and seasonally lower milk production in Oceania. By contrast, international butter price quotations increased moderately for the tenth consecutive month, reflecting constrained exportable availabilities, mainly in Western Europe, on solid internal sales, tight inventories and seasonally falling milk production. Meanwhile, world cheese prices increased slightly, primarily due to high internal sales in Western Europe.