Global Dairy Prices Soften—Again
For the fourth consecutive Global Dairy Trade (GDT) auction (held twice each month), dairy prices in the aggregate slumped today.
The last time prices rose (at least in the aggregate) was the first week of July. At today’s auction, prices were down 1% on heavy trading with 35,656 metric tons changing hand.
It wasn’t all bad news. Skim milk powder was up 1.8% to $1.21/lb. That means U.S. powder, at just over a dollar per pound, remains very competitive in international markets.
But the other major commodities did take a hit. Butter was down 1.2% to $1.57/lb. Cheese dropped only slightly, -0.4%, to $1.56/lb and whole milk powder dropped 2% to $1.31/lb. Even with these declines, U.S. prices for these products aren’t competitive globally.