World Dairy Prices Soften
World dairy prices softened on the Global Dairy Trade (GDT) auction in New Zealand today, down 0.8% in the aggregate. Volume was extremely light, with just 16,442 metric tons changing hands. Normally, 25,000 tons trade in the bimonthly auction.
Cheddar cheese dropped 6.8% to $1.87/lb. Butter was off 5.8% to $1.75. The bit of good news came on the dry products side, with both skim milk powder (SM) and whole milk powder (WMP) up 0.1% and lactose shooting up 7.9%. SMP traded at $1.08 and WMP was at $1.25 on the GDT this morning.
If there is good news in any of this, U.S. prices for both cheese and butter are highly competitive on world markets. As a result, traders are reporting fairly heavy interest in both. U.S. powder prices, however, are now well above world prices. U.S. Lactose is trading at or below par with world prices.
You can view all of today’s GDT results here.