World Dairy Prices Jump—Mostly
World dairy prices jumped 1.7% in the aggregate today on the Global Dairy Trade auction in New Zealand this morning. Trading was heavy, with just under 38,000 metric tons of dairy products changing hands.
Skim milk powder (SMP) show the most strength of the major commodities, up 3.3% to $1.37/lb. Cheddar cheese climbed 2.5% to $1.68/lb. Whole milk powder was up 2.2% to $1.51/lb. The only fly in the ointment was butter, down 1.3% to $1.84/lb.
SMP world prices are trading at about a 12% premium over U.S. skim powder prices, making it an attractive export commodity. The other three major dairy commodities—cheese, butter and whole milk powder—are still trading below U.S. prices.
You can view the full results of today’s GDT activity here.