There was more pessimism on the GlobalDairy Trade (GDT) auction from New Zealand today, with the average price for dairy commodities dipping to $2,276 per metric ton, a decline of 7.4%. The volume of product sold, at 24,474 tons, was up nearly 12% from two weeks ago.
Butter took the biggest drop, at 8.3%, and is now trading at $1.32/lb. This is well below U.S. prices, where butter on the Chicago Mercantile Exchange (CME) is trading above $2/lb. Cheddar cheese dropped 4.2% on the GDT auction to $1.27/lb. Barrel cheese on the CME is trading at $1.45. And skim milk powder prices dropped 2.2% to 81¢/lb. CME skim milk powder prices are now at 71¢/lb., a ridiculously low price, but competitive on world markets.
You can view more on today’s GDT auction here.
Global Dairy Slips on Soft Butter Prices