World Dairy Markets Continue to Struggle
The aggregate price of dairy commodities fell 3.5% today on the Global Dairy Trade (GDT) auction in New Zealand. Volume was strong, with 35,072 metric tons of product traded.
Whole milk powder dropped the most, falling 5.5% to $1.29/lb. Butter declined 3.6% to $2.50/lb and cheddar cheese was off 2.8%, down to $1.82/lb. The only bright spot was skim milk powder (SMP), up 1.2% to 82¢/lb.
If there is good news, U.S. butter, cheddar and SMP are still competitive on world markets. Butter was trading at $2.23/lb on the Chicago Mercantile Exchange this week, cheddar was trading at $1.72 and SMP was trading at 73¢.
You can view all of today’s GDT results here.