Global Dairy Prices Jump 6.7%
Dairy commodity prices shot up 6.7% in aggregate today on New Zealand Global Dairy Trade (GDT) auction, marking the fifth consecutive trading session that prices have risen.
Trading was fairly modest, though, with just 23,326 metric tons changing hands. But seven of the eight commodities reporting trades gained ground. (Buttermilk powder reported no activity.)
Whole milk powder (WMP) shot up 8.4% to a $1.37/lb. That’s still below U.S. prices for WMP, which USDA reports is trading in the range of $1.50 to $1.65/lb.
Skim milk powder (SMP) jumped 3.9%, rising to $1.15/lb, the highest level SMP has been at in years. Much of that price gain may be driven by the fact that European intervention stocks of SMP have been nearly exhausted. U.S. SMP prices are now very competitive, with Chicago Mercantile Exchange prices of SMP still trading below $1/lb.
GDT butter prices also were up, increasing 4.2% to $2.02/lb. U.S. prices are still trading at a premium, about 10% higher than world prices.
Cheddar cheese also rose on the GDT today, up 1.4% to $1.62/lb. While world prices for cheese rose, U.S. prices for are still very competitive with barrels trading at $1.29 and blocks at $1.45/lb.
See all of today’s GDT results here.