Global dairy markets continue to be stable as international dairy commodity prices continue to hold firm reflecting the relatively tight supply situation and strong import demand.Three key factors have played a key role in the evolution of this situation; exchange rates particularly the decline in the value of the U.S.dollar,have increased European Union export prices,lower than anticipated milk production in Oceania,and reduced exportable supplies in the EU.Although the dollar has lately strengthened, world dairy prices resisted any declines as the EU embarked on a round of aggressive export restitution cuts in response to a well balanced domestic market and budgetary pressures.