Global Dairy Markets Soften Yet Again
The composite price of dairy products offered on the Global Dairy Trade auction in New Zealand declined again today, down an aggregate of 2% on heavy trading. Some 42,412 metric tons of products traded this morning.
This is the sixth consecutive trading session that has been in negative territory.
The only bright spot was skim milk powder (SMP), up 1.2% to 91¢/lb. Cheddar cheese declined 4.6% to $1.47/lb. Whole milk powder (WMP) was off 2.9% to $1.20/lb, and butter dropped 1.7% to $1.84/lb.
U.S. prices, based on Chicago Mercantile Exchange cash prices, are competitive for barrel cheese and SMP. That’s not the case for butter or WMP, which are now trading substantially above world prices and have been for some time.