The FAO
Dairy Price Index averaged 119.9 points in June, down 1.2 points
(1.0 percent) from May, ending twelve months of uninterrupted increases. At this level, the index value stood 21.6 points (22.0 percent) above its value in the corresponding month last year. In June, international quotations for all dairy products represented
in the index fell, with butter registering the highest drop, underpinned by a fast decline in global import demand and a slight increase in inventories, especially in Europe. Whole milk powder prices declined on reduced purchases by China and lower demand
for spot supplies, while global export availabilities remained adequate to meet existing orders. International quotations for cheese and skim milk powder declined slightly also on reduced global import demand amid somewhat higher export supplies from major
producing regions.