Global Dairy Trade Average Down 4.2% but Cheddar Up 8%
Today’s Global Dairy Trade (GDT) auction saw the weighted average for all products drop another 4.2%, following the 1.8% drop in the May 20 event and a 1.1% decline in the May 6 event. The price index has seen declines since reaching its recent high February 4.
The downfall today was led by a 10.2% drop in rennet casein (up 4.6% in the last event), and an 8.5% decline in whole milk powder (down 1.1% in last event). Anhydrous milkfat was down 5% (up 1.9% in last event), butter milk powder was down 1.9% (same as last event), and GDT butter was unchanged (down 3.8% in the last event.
The good news is the increase in Cheddar cheese, up an average 8% today, following a 2.1% decline in the last event. Skim milk powder was up 2.1% (down 3.5% last time).
FC Stone reports the average butter price equated to about $1.6485/lb. U.S., down from $1.6631/lb. in the May 20 event ($1.6083/lb. on 80% butterfat, down from $1.6225/lb.). CME butter closed today at $2.26/lb. The Cheddar cheese average was $1.9213/lb. U.S., up from $1.8635/lb. The U.S. block price today is at $1.9750/lb. Skim milk powder, at $1.7524/lb. U.S., is up from $1.6933/lb., and the whole milk powder average at $1.6303/lb. U.S., is down from $1.7586/lb. in the last event. The CME Grade A nonfat dry milk price today stands at $1.8575/lb.
Source: GDT & INTL FCStone