Global Dairy Markets Show Strength
Despite slumping oil prices, global dairy markets showed some vigor today on the GlobalDairyTrade (GDT) auction in New Zealand.
The weighted index of the eight dairy commodities jumped 6.6% with nearly 35,000 metric tons of product selling. This is the largest trade volume on the auction since last October.
Whole milk powder jumped 9.9% to $1.03/lb, butter climbed 6.6% to $1.30 and skim milk powder was up 2.1% to 89¢/lb. Of the eight commodities traded, only cheddar slid backwards, dropping 0.8% to $1.31/lb.
U.S. prices are still far above these world prices for butter and cheese, with butter trading yesterday at $2.15/lb and cheddar at $1.78. The U.S. is competitive, however, on skim milk powder, with U.S. prices at 84¢/lb.
You can view full GTD auction results here.