World Dairy Markets Jump 3.4%
New Zealand’s GlobalDairyTrade (GDT) auction saw aggregate dairy prices jump 3.4% today, the second auction in a row and the fourth out of the last five that saw prices increase. The aggregate price for dairy products was $2,399/metric ton.
While the news is positive, prices need to climb to $3,000 per ton before milk prices fully recover. A total of 24,046 metric tons traded, again not a huge volume, but a third more than the volume sold at the last auction May 17. This week's volume is also the largest traded since February 2.
Six of the eight commodities offered for sale saw prices rise, with only whole milk power and rennet casein seeing price declines. Skim milk powder was up 12.1%, to 85¢/lb. Cheddar cheese rose 7.8% to $1.21/lb., and butter gained 3.2% to $1.25/lb. Whole milk powder dropped 1.7% to $1/lb.
U.S. prices for butter are still trading well above world prices at $2.07/lb and barrel cheddar cheese is still wholesaling for $1.42 on the Chicago Mercantile Exchange. U.S. powder prices, however, are again competitive at 78¢/lb.