The FAO Dairy Price Index averaged 113.0 points in February, up 1.9 points (1.7 percent) from January, rising for the ninth consecutive month and nearing a 40-month high. In February, international price quotations for butter rose, underpinned by firm imports by China amidst limited export supplies from Western Europe due to a surge in internal demand in view of the upcoming Spring holidays. Quotations for whole milk powder (WMP) increased due to high import purchases and concerns over potentially lower export supplies in New Zealand stemming from dry weather conditions. Skim milk powder prices also increased, reflecting low stocks and tight export availabilities in Europe. By contrast, reduced demand for spot supplies, coupled with high inventories in the United States of America, weighed on cheese quotations.
Source: FOA
