The FAO Dairy Price Index averaged 120.8 points in May, up 1.7 points (1.5 percent) from April, marking one year of uninterrupted increases and lifting the value 26.4 points (28 percent) above its level of one year ago. However, the index is still 22.8 percent below its peak value reached in December 2013. In May, international quotations for skim milk powder rose the most, reflecting solid import demand amid limited spot supplies from the European Union, and those for whole milk powder increased on high import purchases, especially by China, despite New Zealand’s offer of large sales. Cheese quotations also strengthened, mostly due to lower supplies from the European Union amidst strong demand. By contrast, butter prices fell on increased export supplies from New Zealand, marking the end of an eleven-month long price rally.
Dairy Outlook List – free subscription!
The Dairy Outlook List is a network to facilitate the exchange of information on developments in the world’s dairy industry between list members.