World Dairy Markets Take Another Hit
Dairy commodities on the Global Dairy Trade (GDT) auction in New Zealand took another hit today, declining 3.9% on the aggregate price. Trading volume was moderate, with 29,592 metric tons selling.
This is the fifth trading session in the last six that world dairy markets have declined.
Cheddar declined 7.9%, to $1.54/lb. Butter was down 2.3%, to $2.03/lb. Skim milk powder (SMP) was down 4.8%, to 76¢/lb, and whole milk powder was down 2.5%, to $1.25/lb.
As a result, all U.S. dairy products other than SMP are now trading above world prices. On the Chicago Mercantile Exchange, butter is selling for $2.20/lb, barrel cheese at $1.58/lb (though blocks are selling for $1.49/lb) and SMP is trading at 65¢/lb. USDA’s Dairy Market News reports whole milk powder is selling in the range of $1.29 to $1.45/lb.
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