Global Cheese, Skim Milk Prices Now Above U.S. Prices [VIDEO]
For the first time in a long time, global prices for cheese and skim milk powder are now trading above U.S. commodity prices.
The Global Dairy Trade (GDT) auction, held today, saw cheese trading at $1.60/lb and skim milk powder trading for $1.04/lb. Prices on the Chicago Mercantile Exchange for barrel cheese is $1.48/lb and 92¢/lb for skim milk powder.
These price disparities likely won’t immediately spur U.S. exports, because purchases can take several months to occur. But the higher global prices likely mean less imports coming into the United States from other sources, say analysts.
Butter was still trading at $1.77/lb on the GDT today, about 20¢/lb. below U.S. commodity butter prices. Whole milk powder was trading at $1.26/lb.
Overall, the composite GDT dairy price was up 1.7% since the last auction September 6, and marks the fourth consecutive auction that composite prices were up. Just over 35,000 metric tons of product sold, in line with volumes traded over the past three months.
See the full GDT auction summary here.
Prices to Rise after Global Dairy Trade Auction