Global Dairy Markets Continue to Show Positive Gains
Dairy prices shot up 3.3% in the aggregate on the Global Dairy Trade auction in New Zealand today, the seventh consecutive twice-monthly trading session to do so.
The last time global prices were in decline was December 4th of last year. Trading was light, however, with just under 24,000 metric tons of product changing hands.
Topping the price rise was buttermilk powder, shooting up 11%. Of the major commodities, cheddar cheese was up 6% to $1.76/lb. Whole milk powder climbed 6% as well, climbing to $1.46/lb. Butter was up 3.7% to $2.11/lb. The only major dairy product that declined was skim milk powder, down 4.3% to 1.12/lb.
With the exception of butter, U.S. prices are still competitive with global prices. SMP, for example, is trading at 98¢/lb this week on the Chicago Mercantile Exchange, barrels of cheddar are at $1.43/lb, and USDA reports whole milk powder is in the $1.45 to $1.53/lb range.
You can view all of the results of today’s GDT auction here.