World Dairy Markets Offer a Bit of New Year’s Cheer
World dairy markets ticked up 2.2% on the Global Dairy Trade auction this week in New Zealand. Volume, however, was moderate with just 25,400 metric tons trading hands.
Whole milk powder showed the greatest strength, up 4.2% to $1.31/lb. Skim milk powder (SMP) was up 1.6% to 77¢/lb while butter climbed 0.6% to $2.04/lb. It wasn’t all good news, however, since cheddar cheese slid back 2.1% to $1.50/lb.
U.S. prices for cheddar and skim milk prices are still competitive on global markets. The Chicago Mercantile Exchange price for barrel cheese is at $1.43/lb while SMP is trading at 67¢. U.S. butter prices, at $2.21/lb, are now slightly above world prices. U.S. whole milk prices are also slightly above world prices at $1.35 to $1.45/lb FOB, reports USDA’s Dairy Market News.
Read the full GDT report here.