The United Nations Organization for Food and Agriculture (FAO) has just published the index dairy for December 2017, closing the year on a decline. The index FAO is the result of a measurement monthly 4 commodities dairy (butter, milk powder, skim milk powder and cheese) which takes the average of the quantities and prices are exported to the global market to the basket of products referred to. The values obtained are deflacionados and referrals after the period 2002-2004 taken as the value= 100.
The volatility comes marking strongly the exchange of international trade of dairy in the last 10 years.
The level of european stock of skim milk powder put hand brake to their contributions, even though they are prompt to be overcome, and are likely to end up derivandolos to animal consumption. The butter and the cheese grew in price by holding the market during 2017, while the milk powder floated close to 3,000 usd/tn. Towards the end of the year all dairy products were falling and the future (first half 2018) marked a soffit for all as waiting to see what happens...we started with a 2018 uncertain. The market already assimilated to the Russian veto, it remains to be seen that evolution may have the production in the exporting countries, especially the USA and New Zealand. Also see the evolution of chinese purchases and the price of oil: two drivers fundamental of the dairy business.
