Global Dairy Trade Auction Leaves Mixed Message
Today’s Global Dairy Trade (GDT) auction in New Zealand sent a bit of a mixed message, with butter and anhydrous milk fat both declining but other commodities gaining a bit of ground.
Volume was again heavy, with 36,258 metric tons being purchased by 179 buyers.
Butter declined 4.9% to $1.81/lb with anhydrous milk fat down 5.1%. But cheddar cheese jumped 2.7% to $1.72/lb. Skim milk powder (SMP) was up 1.9% to $1.39/lb. Whole milk powder was up just 0.1% to $1.51/lb.
U.S. cheddar and whole milk powder prices are both still trading above world prices. But U.S. SMP prices continue to be a good buy internationally. U.S. butter prices are roughly at par with world prices.
You can see all the results of today’s GDT activity here.