World Dairy Prices Again Soften
For the fourth consecutive twice-monthly trading session, world dairy prices again declined on the Global Dairy Trade auction in New Zealand today. The decline was slight in the aggregate, down 0.4%. Volume was moderate, with nearly 25,000 metric tons changing hands.
Butter took the largest hit of the major commodities, down 4.8% to $1.97/lb. (Butter milk powder was down nearly 12%.) Cheese also declined 1.5% to $1.70/lb.
Powder prices did offer some good news, with skim milk powder (SMP) up 3.2% to $1.10/lb. Whole milk powder was unchanged at $1.35.
U.S. prices for SMP remain competitive at $1.05/lb. But U.S. butter, cheese and whole milk powder prices are now trading at a premium to world prices.
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