Cheddar Surges On Global Dairy Trade Auction
Cheddar cheese jumped 14.5% on New Zealand’s Global Dairy Trade (GDT) auction today, closing at $1.94/lb. This puts U.S. cheddar cheese in a competitive spot, with blocks trading at $1.67 and barrels trading at $1.46 on the Chicago Mercantile Exchange this week.
Butter also jumped 3.3% on the GDT today, closing at $2.55/lb—or 3¢/lb higher than U.S. prices. World prices for skim milk powder, at 98¢, are also slightly above U.S. prices at 95¢.
While there are formulation differences for cheese and butter in world trade, these prices put the U.S. in a competitive position to improve on already expanding export prospects for the rest of the year. U.S. export tonnages are already up 11% and value is up 23% in the first quarter of 2017 over last year.
Read the full GDT report here.