Results Mixed on Global Dairy Trade Auction
If you’re exporting powder, today’s Global Dairy Trade (GDT) auction in New Zealand offered a bit of good news. But if you’re trying to export butter and cheddar cheese, not so much.
Volume on today’s auction was respectable, with 29,514 metric tons of dairy products changing hands. Today’s auction also marks the first time since September that the aggregate price of dairy products was positive, up 0.4%.
The good news is that skim milk powder jumped 4.7% today, climbing to 80¢/lb. While still not stellar, that’s 9¢/lb higher than SMP is trading on the Chicago Mercantile Exchange (CME). Whole milk powder ticked up 1.7% to $1.28/lb.
But butter softened during the heat of the auction (pardon the pun), down 11.1% to $2.08/lb. That means the global benchmark for butter is now trading below CME prices of $2.19/lb.
Cheddar cheese was also down 3.9% on the GDT auction to $1.68/lb. Barrel cheese on the CME is at $1.55/lb, which means U.S. cheese is still somewhat competitive internationally.
For the full GDT Report, click here.