Whole Milk Powder Shows Strength On Global Dairy Trade Auction
Whole milk powder was up 1.9% on today’s GlobalDairyTrade (GDT) auction, the only major dairy commodity that showed strength. Whole milk powder climbed to $2,079 per metric ton, or 94¢/lb.
Volume in today’s auction was 31,348 metric tons, slightly lower than the auction held July 5, but still the highest volume traded since last November.
Butter prices dipped 5%, to $1.22/lb. Cheddar cheese dropped 1.1% to $1.31/lb, and skim milk powder also dropped 1.1% to 87¢/lb. U.S. prices for these commodities were $2.29/lb. for butter; $1.75/lb. for cheddar cheese and 87¢/lb. for skim milk powder on the Chicago Mercantile Exchange yesterday.
In other words, U.S. prices are still far above global prices for butter and cheese, making export sales extremely difficult on a commodity basis. But the U.S. remains competitive in skim milk powder, though at very low price levels.