Milk prices are sliding in both hemispheres
Whether you’re milking cows in the U.S. or New Zealand, milk prices are sliding in both the Northern and Southern hemispheres. In the world’s largest dairy exporting country, New Zealand, the bundle of dairy products traded on its Global Dairy Trade (GDT) has dropped in the four past sessions dating back to May 16. When looking back even further, dairy products' fortunes were down in eight of the last 10 sessions, extending back to February 21, 2023.
In the most recent session that ended on July 4, the six products traded that day dropped a combined 3.3%. That was the largest downturn since the April 4 trading session when products slid 4.7%.
As U.S. dairy farmers already know, the news hasn’t been much better stateside. Class III milk prices, anchored by cheese, have been hard hit. Consider the following snapshots in time for the three-month bundle of June-to-August Class III futures on a per hundredweight basis (cwt.):
July 6, 2023