World Dairy Prices Continue to Slump
The Global Dairy Trade auction celebrated its 200th trading event today in New Zealand, but not in a good way.
The composite index of dairy ingredients declined 3.4% with 35,042 metric tons trading. All commodities that traded showed declines.
Butter was down 5.9%, to $2.33/lb. Cheddar cheese dropped 4.2% to $1.74/lb; skim milk powder (SMP) was down 6.5% to 77¢/lb and whole milk powder dropped 2.7% to $1.26.
The only good news, if you can call it that, is that U.S. prices are still below world prices, making them somewhat attractive to foreign buyers. Butter is trading at $2.21/lb on the Chicago Mercantile Exchange, barrel cheddar is trading at $1.64/lb and SMP is trading at 72¢/lb.
Since its inception in 2008, the GDT has facilitated more than $21 billion in trades, accounting for 13.8 billion pounds of dairy ingredients being traded in 80 countries. The volume traded represents some 370,000 20’ shipping containers.
For complete auction results, click here.