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October 1, 2019

Global Dairy Markets Up Kinda Sorta

 |  By: Jim Dickrell

While the aggregate price of dairy products was up today 0.2% on the Global Dairy Trade (GDT) auction in New Zealand, most of the major commodities themselves were down. Go figure.

And this was a good test of the market, with 38,716 metric tons of dairy products changing hands. On a typical trading Tuesday, just 22,000 to 25,000 metric tons trade on the GDT auction.

Skim milk powder was up 2.7% to $1.21/lb—the best news of the day for U.S. exporters. But butter and whole milk powder were both off 0.2%, and cheddar cheese was down 3.4%.

U.S. skim milk powder is still competitively priced, trading at $1.13/lb. But the other three major U.S. commodities are still out-pricing world prices by a good bit, by 15 to almost 25%.

The more minor commodities drove the aggregate GDT price into positive territory, with butter milk powder up 6.7%, lactose up 1.8% and rennet casein up 0.7%.

For all of today’s trading activity, click here.