Cheese Exports Expected to Move Higher
Event 194 of the Global Dairy Trade (GDT) took place on Tuesday resulting in a 0.4% decline in the price index. Products that traded higher in this week’s GDT trade include Cheddar, rennet casein and skim milk powder. Products that traded lower include anhydrous milkfat, butter, lactose and whole milk powder, while buttermilk powder wasn’t offered at the event.
Taking a closer look, Cheddar added 1.4% and moved to $1.81 ½ per pound compared with the average CME block and barrel price of $1.68 ¼. GDT Cheddar holds a 13 ¼ cent premium to CME Cheddar.
Exports in U.S. cheese have picked up since the beginning of 2017 as shown in the report put out by the U.S. Dairy Export Council. With U.S. cheese prices currently valued below EU and Oceania prices, exports will likely continue moving higher. However, cheese stocks remain burdensome.
Butter prices dropped 1.3% to $2.54 per pound, while CME butter is trading slightly higher at $2.67. Unlike cheese, butter exports have been lackluster while stocks remain high.
GDT flagship products skim and whole milk powder showed mixed results with skim milk trading 0.3% higher at 89 ¼ cents, and whole milk powder dropped 0.6A% at $1.42 ½.