Cheese, Powder Prices Drop on World Markets
The Global Dairy Trade auction held today saw major declines in both skim and whole milk powder prices, and a moderate drop in cheddar cheese prices. Skim milk powder dropped 15.5% to 96¢/lb and whole milk powder dropped 12.4% to 1.26/lb. Cheddar cheese was off 4.2% to $1.56.
The lone bright spot in the major commodities was butter, up 1.2%, to $2.11/lb.
These prices changes mean U.S. commodity prices are converging with global prices, with U.S. cheddar barrel prices at $1.44. U.S. butter prices are trading at $2.14/lb. Skim milk powder prices remain very competitive at 80¢/lb.
Volume on today GDT auction was low, with just 22,328 metric tons trading. See the full report here.