Event 246 of the Global Dairy Trade took place on Tuesday with the overall index climbing a half percent. This is the third consecutive twice monthly GDT trading session that markets have strengthened. One-hundred-99 bidders were involved in the sale of more than 38-thousand metric tons of products.
The increase in prices came mostly on the strength of the rising skim milk powder market, which was up 2.4% today to $1.24/lb. Whole milk powder was unchanged at $1.42/lb. Other products that gained included anhydrous milk fat and Rennet casein. More than three-quarters of Tuesday’s sales were whole milk powder and skim milk powder. Products that fell in GDT were butter, down four tenths of a percent at $1.815 and cheddar which lost 2.2% and ended at $1.65 per lb. Whole milk powder was unchanged at $1.42 per lb.
Both cheddar cheese and butter prices in the U.S. domestic market are out-pricing world prices by substantial margins. Blocks of cheddar here are trading at $2.11/lb; butter is at $2.07/lb.
U.S. skim milk prices are trading competitively vis-a-vis world prices, at $1.17/lb. Whole milk prices, though, are well above world prices at $1.75 to $1.80/lb.
For the complete GDT results, click here.