World milk market: Sluggish trade, limited supply and high prices

Yana Linetska, analyst of the Association of Milk Producers The average value of the FAO dairy price index in July was 146.4 points (Chart 1), which is 3.8 points (2.5%) lower than in June, but still 29.7 points (25.4%) ) above the level of July last year. International quotations of condensed milk powder, as well as butter and whole milk powder, decreased the most, due to weak market activity in Europe due to the onset of the summer vacation period. In addition, most buyers have stockpiled enough to meet their current needs, which, combined with weak demand from China and high dairy prices, has reduced demand in the spot market and, as a result, lowered international quotations. At the same time, world cheese prices remained stable, as strong domestic sales in European countries popular with tourists, such as France and Italy, offset weak import demand in international markets. Despite the general lackluster trade, the limited volume of supply allowed to keep world prices for ...