Global Dairy Markets Continue to Surge
World prices continued to surge today on the Global Dairy Trade auction in New Zealand, with the composite index of prices jumping 4.5%. Volume, however, was light at just under 24,000 metric tons, or a fourth less than recent auctions this fall.
Cheddar cheese showed the largest gain of the major commodities, up 11% to $1.68/lb. Skim milk powder jumped 9.8% to 1.16/lb, and whole milk powder was up 3.2% to $1.55/lb. Butter was up 1.1% to $1.90/lb.
These prices are coming into competitive alignment with U.S. dairy commodity prices. On the Chicago Mercantile Exchange yesterday, cheddar blocks were trading at $1.71/lb, skim milk powder at 88¢/lb, and butter at $1.99/lb.
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