Global Dairy Prices Drop 3.9%
The composite dairy prices on the Global Dairy Trade auction declined 3.9% today, but most of that came with the drop in whole milk powder (WMP) prices. WMP prices dropped 7.7% to $1.49/lb.
But the other major commodities, butter, cheddar cheese and skim milk powder (SMP), actually strengthened. Butter was up 0.5% to $1.95/lb; cheddar cheese was up 1.4% to $1.77/lb, and SMP was up 2.3% to $1.21.
That makes U.S. prices relatively competitive, with barrels of cheddar trading at $1.60/lb last week on the Chicago Mercantile Exchange and SMP trading at $1.02. U.S. butter prices are still higher than world prices, at $2.27/lb.
Volume on today’s auction, at 22,396 metric tons, was similar to auctions in November and December.
Read the full results here.