Global Dairy Prices Grind Lower
Prices moved lower in this morning’s Global Dairy Trade auction in New Zealand. All contracts ended 3.2% lower. While the majority of the trade saw lower prices, a few contracts climbed including butter, which rose 0.2% to $2.0857, lower than last week’s CME spot price of $2.1575. Lactose prices also improved as contracts climbed a whopping 6.8%.
Skim milk powder decreased 3.8% to land at $1.1677 per lb. and whole milk powder decreased 3.7% to end at $1.4463 per lb. Cheddar also went down, decreasing 5.3% to $1.6286 per lb. While still considerably higher than last week’s CME spot price for blocks of $1.5975, it’s lower than last week’s barrel price of $1.65.
Overall, today’s prices were a mixed bag for the affordability of American products, but any movement of the global market lower is ultimately positive for U.S. producers as U.S. products become more price competitive.
Read the full auction results here.