Global Dairy Prices Up Almost 2%
Aggregate world dairy prices climbed 1.9% on today’s Global Dairy Trade auction in New Zealand. Trading was light, however, with just over 18,000 metric tons changing hands.
Cheddar cheese saw the largest increase, up 4.4% to $1.91/lb. Skim milk powder (SMP) was up 3% to 93¢/lb and butter was up 2.4% to $2.63/lb. Whole milk powder was up just 0.2% to $1.46/lb. The only commodities trading lower were lactose, down 3.5%, and rennet casein, down 6.1%.
Of the major commodities, U.S. dairy prices are still competitive for cheese, butter and SMP in world trade. The United States Department of Agriculture reports that whole milk powder in the U.S. is trading in the $1.45 to $160 range, making it a tougher sell in export markets.
You can read all of today’s GDT results here.