Global Dairy Markets Flat Though Trading Volume High
In the aggregate, dairy prices on the Global Dairy Trade (GDT) auction today in New Zealand recorded a big fat 0.0% change in value after some 34,000 metric tons of product changed hands. The good news is that the markets didn’t decline further after falling for four consecutive trading sessions over the past two months.
And that doesn’t mean that individual products were unchanged. Cheddar cheese was up 1.3% to $1.66/lb and whole milk powder was up a tick, 0.1%, to $1.34/lb. However, butter prices declined 3.2% to $2.18/lb. Skim milk powder was also down 0.3% to 89¢/lb.
U.S. prices for cheddar cheese and skim milk powder are currently trading below world prices. But if you tack on a tariff rate of 25%, U.S. prices become uncompetitive. U.S. butter prices are already trading above world prices even without the imposition of tariffs.
U.S. export volumes remained strong in June. But that was before the full impact of the tariffs took effect.
For more on today’s GDT, click here.