World Dairy Markets Take Another Hit
For the third auction in a row, and eight out of the last 10, world dairy prices softened on the Global Dairy Trade (GDT) auction again today.
In the aggregate, dairy prices were off 5%, following a 1.2% decline on June 19. Whole milk powder took the largest hit, down 7.3% to $1.32/lb. U.S. prices are well above that level, ranging from $1.50 to $1.75/lb, reports USDA.
Skim milk powder dropped 4.6% to 87¢/lb. Cheddar cheese fell 4.3% on the GDT to $1.68/lb. Butter was down 4% to $2.45/lb. U.S. prices for SMP, cheddar cheese and butter are still well below world prices, which should make them competitive on world markets. But those prices are at risk in Mexico and China as high tariffs kick in at the end of this week.
Analysis by the National Milk Producers Federation and other economists suggest U.S. milk prices could soften by $1/cwt or more if tariffs become fully operational this fall.
See the full GDT results here.