World Dairy Prices Drop 2.6%
Pretty much whatever gains world dairy markets made on the July 16 Global Dairy Trade auction were given back today, when aggregate prices dropped 2.6%. At the last trading session, prices spiked 2.7%.
This is the fifth time in six trading sessions that aggregate prices declined. Volume was also heavy today, with just under 35,000 metric tons trading hands. In the first half of 2019, more typical volumes were 20,000 to 25,000 metrics tons.
Of the major commodities, butter was the biggest loser, down 5.5% to $1.89/lb. Cheddar cheese was off 2%, to $1.74. Skim milk powder was down 1.6% to $1.13/lb and whole milk powder was down 1.7% to $1.38/lb. Lactose was the biggest overall loser down, 11.5%.
Despite the declines, U.S. prices are still competitive for both cheese and skim milk powder. But both U.S. butter and whole milk powder prices are trading well above world levels.
Read all of today’s world price changes here.