FAO Dairy Price Index

The FAO Dairy Price Index averaged 127.8 points in June, up 1.5 points (1.2 percent) from May and standing 7.9 points (6.6 percent) above its corresponding value one year ago. In June, international price quotations for butter rose to a 24-month high, underpinned by increased global demand for near-term deliveries amidst heavy retail sales and seasonally falling milk deliveries in Western Europe. Butter prices were also influenced by low inventories in Oceania, which coincided with the region’s lowest point in milk production. Meanwhile, skim milk powder prices increased, principally reflecting steady imports from Eastern Asia and somewhat high internal sales in Western Europe. World whole milk powder prices increased slightly in June on firm import demand and seasonally lighter milk production in Oceania. By contrast, cheese prices decreased marginally, mainly caused by a slowdown in global import demand for near-term deliveries.