World Dairy Prices Make Nice Gains

September 1, 2015 01:26 PM

Results of the Global Dairy Trade auction for September 1  show nice gains pretty much across the board since the last auction was held August 18.  On a weighted basis, dairy prices are up 10.9%.

Butter jumped 8% to a weighted average across contracts of $1.25/lb. Cheddar cheese was up 4.7% to $1.32/lb.  Skim milk powder jumped 11.7% to 77¢/lb and whole milk powder increased 12.1% to 94¢/lb.

The bad news for U.S. farmers and exporters is that these world prices are below, sometimes way below, Chicago Merc prices. For example,  spot prices for butter are at $2.36/lb, cheese at $1.75/lb and skim milk powder at 82¢/lb.

The September 1 auction saw 35,865 metric tons of dairy commodities trade. This is down 1,039 tons from August 18 and 10,662 tons less than the auction held August 4. (Note: At 46,527 tons, the August 4 auction was the largest amount traded since last October. 

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