Global Market Up 5.9%
Prices at today's Global Dairy Trade (GDT) Auction rose 5.9%, marking the third consecutive monthly increase. This was the biggest gain in the market since November 2016, and market gains in 2018 have now reached 13.5%.
According to AgriMoney, the increase was due to Fonterra cutting trading volumes in the face of "the dry weather impacting milk flows" in New Zealand.
Here is how product prices fared in today's auction:
- Butter: up 7.9% to $2.39 per pound
- Cheddar: up 7.2% to $1.69 per pound
- Skim milk powder: up 7.2% to 87 cents per pound
- Whole milk powder: up 7.6% to $1.46 per pound
This remains good news for U.S. dairy exports, since as of Monday's CME trade all products were trading below world prices.