(AMI) - Rising prices for nearly all agricultural products have further boosted FAO's international price index in February. At 167.5 points, it was 1.7% up on the previous month, its highest level since August 2018. The sub-index for dairy products rose for the second month in a row, after continuing throughout the second half of 2018 had gone down. Consistently stronger trends at the product level drove the index above the level of the previous year. The other sub-markets, which are included in the index, were also up mostly compared to the previous month. Prices for dairy products are on the rise In February, global prices saw a rise in product prices across the dairy market. At 192.4 points, the index was 5.6% or 10.3 points above the previous month's result. The previous year's level was also slightly exceeded by 1.3 points. In particular, the prices for skimmed milk powder tended to be stronger, but also whole milk powder, cheese and butter were able to record increases in the case of a dampened export supply.High demand for Oceania goods has led to firmer trends for skimmed milk and whole milk powder as well as cheese. Butter prices were further supported by a seasonal decline in production expected in Oceania in the coming months.
ZMP Live Expert Opinion
For the time being, the world market should continue to be characterized by subdued export supply and probably robust demand. This speaks for a largely balanced market situation until the middle of the year, with stable to possibly even firmer price trends. In the second half of the year, production volumes of major exporters could become more extensive, especially in the EU. As long as the market can accommodate the additional supply, the prospects remain stable overall. Otherwise, from the middle of the year price corrections downwards can not be ruled out.
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