Global Dairy Markets Decline for Third Consecutive Auction
Global dairy markets again declined today on New Zealand’s Global Dairy Trade auction, this time down 1.2% on relatively low volumes. The last time markets saw an increase, at least in the aggregate, was January 21.
Volume on today’s auction was just 25,576 metric tons, which is a modest (even low) level of trading. There were 184 active bidders, and 136 winning bidders.
Butter was the only major commodity with price support, climbing 1 percent to $1.87/lb. Cheddar cheese was the biggest loser, dropping 4.7 percent to $1.94. Skim milk powder dropped 3.2% to $1.25/lb, and whole milk powder was down 0.5 percent to $1.34.
U.S. prices for cheddar cheese and skim milk powder are still very competitive. U.S. butter is at about or slightly below par with global prices, and U.S. whole milk prices remain about 50₵ higher than world prices.
You can view all the results of today’s Global Dairy Trade auction here.