Results Mixed on Global Dairy Markets
Though the final aggregate dairy price declined 0.2% on today’s Global Dairy Trade (GDT) auction in New Zealand, the news wasn’t all bad. In fact, there were a couple of notable bright spots.
First, though, the bad news. Global butter prices declined 3.5% to $1.83/lb, which is now about 50₵/lb less than U.S. butter prices (on an unadjusted fat basis). Skim milk powder (SMP) dropped 0.3% to $1.12/lb. U.S. SMP prices are trading at $1.03. That’s a low price, but still competitive on world markets.
Now the good news. GDT cheddar cheese prices climbed 0.8% to $1.75, about on par with U.S. barrel prices. Whole milk prices jumped 2.1% to $1.41/lb. That’s still below the $1.65 to $1.80 price U.S. whole milk powder is commanding, but it is an improvement.
Volume on today’s GDT trading session also was heavy, with 34,410 metric tons of dairy commodities changing hands. That’s roughly 10,000 tons more volume than has been trading at each auction in the first half of 2019.
For all of today’s trading activity, click here.