Global Dairy Prices Take Step Backward
Global dairy prices slumped 3% today on the Global Dairy Trade auction, with all commodities showing losses. This is the first time in six auctions, or 13 weeks, that prices have fallen back.
Cheese prices fell 2.3% to $1.56/lb, but that still is a few cents above barrel cheese prices on the Chicago Mercantile Exchange. While the spread might not be enough to spur shiploads of exports, it should potentially slow imports from coming into the United States.
The GDT price for butter fell just a tick this week, down 0.3%, to $1.77/lb. U.S. butter prices on the CME are at $1.89/lb.
Skim milk powder prices also were down 3.9% to about $1/lb. But that’s still about 7.5% higher than U.S. prices, making U.S. powder competitive on world markets.
See complete results from today’s Global Dairy Trade auction here.