Global Dairy Prices Jump 11%
The index of world dairy prices shot up 11.4% on the Global Dairy Trade (GDT) auction in New Zealand today, with whole milk powder prices soaring nearly 20% to $3,317 per metric ton or $1.50/lb. Skim milk powder also showed strength, up 6.5% to $1.06/lb.
Butter prices were also up 4%, to $1.88/lb and cheddar cheese jumped nearly 1% to $1.51/lb. The only mitigating factor was that the volume of product offered was just 27,735 metric tons, about 20% less than what has been trading over the past three months or so.
Nevertheless, world butter prices are now on par with U.S. prices, which were trading at $1.90/lb on the Chicago Mercantile Exchange. World cheese prices still lag U.S. prices by about 20¢/lb, but skim milk powder prices are now 20¢/lb. stronger than U.S. prices.
See all GDT results here.