The FAO Dairy Price Index averaged 149.8 points in June, up 5.9 points (4.1%) from May and as much as 29.9 points (24.9%) above its June 2021 value. In June, international prices of all dairy products increased.
Quotations for cheese rose the most, underpinned by a surge in import demand for spot supplies amid market concerns over supply availabilities later in the year, as the early summer heat wave further weighed on already low milk output in Europe. World milk powder prices increased on strong import demand, persistent global supply tightness and low inventory levels. International butter prices rebounded as market uncertainty over milk deliveries in the months ahead bolstered foreign purchases as well as internal demand in Europe.
Dairy Commodity Prices (in USD/MT) were as follows:
| Date | Butter 1/ | Skim Milk Powder 2/ | Whole Milk Powder 3/ | Cheddar Cheese 4/ |
| 2022-01 | 6326 | 3859 | 4243 | 3976 |
| 2022-02 | 6634 | 4097 | 4604 | 4246 |
| 2022-03 | 6923 | 4370 | 4869 | 4249 |
| 2022-04 | 7223 | 4482 | 4725 | 4251 |
| 2022-05 | 6998 | 4227 | 4388 | 4352 |
| 2022-06 | 7130 | 4266 | 4526 | 4633 |
However, there has been some reversal in this trend, in the beginning of July 22, with prices softening in the GDT Auction by 4% as per below details:
What we are gathering from the market is that, while buyers are stocked well for next quarter and theres scant immediate demand, with harsh summer ahead for Northern parts tied with close of the season in Oceania, there will be supply constraints going forward.
In effect, this will not allow prices to inch up substantially nor will it slide much from this level. Lets see how the season shapes up.
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