Global Dairy Markets Up Just a Bit
World dairy prices, at least in the aggregate, were up 0.5% on the Global Dairy Trade (GDT) auction in New Zealand this morning. This is the third consecutive twice monthly GDT trading session that markets have strengthened.
Volume on today's trading session was heavy, with 38,712 metric tons changing hands. This is about 50% more product than is normally involved in a GDT auction.
The increase in prices came mostly on the strength of the rising skim milk powder market, which was up 2.4% today to $1.24/lb. Whole milk powder was unchanged at $1.42/lb.
Cheddar cheese prices actually dipped 2.2% to $1.65 and butter softened (pun intended) to $1.86/lb, down 0.4%
Both cheddar cheese and butter prices in the U.S. domestic market are out-pricing world prices by substantial margins. Blocks of cheddar here are trading at $2.11/lb; butter is at $2.07/lb.
U.S. skim milk prices are trading competitively vis-a-vis world prices, at $1.17/lb. Whole milk prices, though, are well above world prices at $1.75 to $1.80/lb.
For the complete GDT results, click here.