Dairy Index eases back in July
The FAO Dairy Price Index averaged 236.3 points in July, a fall of 2.6 points (1.1 percent). While prices fell overall, the decline was by a smaller margin than in the previous two months as a result of tightening availabilities in Oceania and stagnating milk production amongst other exporters, principally in Europe, South America and the United States. Milk powder prices were underpinned by limited supplies but the increase was more than offset by a fall in cheese prices due to reduced import demand. The fall in the dairy sub-index contributed to a 4 point fall in the overall FAO Food Price Index. The FAO Food Price averaged 205.9 points in July 2013, nearly 2% below its revised value for June and 7 points (or 3.3 percent) lower than in July 2012. The decline in July, which marked the third consecutive monthly drop, was largely driven by lower international prices for grains, soy and palm oil, while sugar, meat and dairy quotations were also down from the previous month.