Global Dairy Prices Drop 3.6%
World dairy prices resumed their downward trend this week on the Global Dairy Trade (GDT) auction this week, after taking a brief respite two weeks ago. In the composite, prices were down 3.6% on heavy volume with more 32,000 metric tons trading.
All major dairy commodities were down: Butter was off 8.5% dropping just below $2/lb. Cheddar cheese dropped 4.7% to $1.58/lb. Skim milk powder was off 1.3% to 89¢/lb and whole milk powder was down 2.1% to $1.31/lb.
World prices for butter, cheddar and whole milk powder are now below U.S. prices. Only U.S. skim milk powder prices are below world prices, but only at a 2¢/lb discount.
And with punitive tariffs in place by Mexico and China, U.S. products are now at a distinct disadvantage.
For the full GDT auction results, click here.