Moderate increases in price quotations for butter, cheese and skim milk powder (SMP) were offset by a fall in those of whole milk powder (WMP), resulting in a nearly stable index in September.
Butter prices increased due to high demand for near-term deliveries and reduced processing in Europe, while cheese quotations rose slightly, reflecting a rise in import demand, coupled with an expanded internal demand in Europe despite continued weakness in food services sales.
Quotations for SMP rose too, resulting from somewhat tight supplies in Europe, where milk production is seasonally declining. By contrast, WMP prices fell, as import demand eased, especially from the Middle East, amid near-peak seasonal production in Oceania.
