Global Dairy Prices Climb 1.4%
World dairy prices climbed 1.4% in the aggregate today on the Global Dairy Trade (GDT) auction. Butter was up 2.6% and whole milk powder climbed 2.9%. However, cheddar fell 3.7% and skim milk powder dipped 0.3%. Volume on the auction was 31,525 metric tons, similar to recent trading days.
The good news in all of this is that U.S. dairy commodity prices are again competitive. The GDT price for butter came in it at $1.81/lb. while butter is trading at $1.78/lb. on the Chicago Mercantile Exchange. U.S. block cheddar prices are now at par, at $1.49/lb. And U.S. skim milk prices are now 12¢/lb. below GDT prices, which traded today at $1/lb.
U.S. prices for butter and cheddar probably aren’t competitive enough to jump start wholesale exporting, but they likely will stem the flow of imports.
See all the GDT results here.