Powder Prices Slump on World Markets
March 18, 2020
Skim milk powder (SMP) and whole milk powder (WMP) prices slumped in this week’s Global Dairy Trade auction in New Zealand.
SMP prices dropped 8.1% to $1.15/lb and WMP prices dipped 4.2% to $1.27/lb. U.S. SMP prices, trading at about $1/lb, are still competitive. But U.S. WMP prices, ranging from a $1.70 to $1.85/lb, continue to trade far above world market prices.
The aggregate value of this week’s dairy trades on the GDT was off 3.9%. Trading volume of all commodities was low to moderate, with just 24,209 metric tons trading hands.
Cheddar cheese actually saw some good support, with prices jumping 2.6% to $2/lb. That makes U.S. block cheddar, at $1.87, somewhat competitive. GDT butter prices were up 0.3% to $1.88/lb., making U.S. butter marginally competitive.