A higher average price at the Global Dairy Trade Auction spurred increases in the U.S. dairy markets on Tuesday. The average winning price at the GDT was 0.9 percent higher than the average at the June 3rd sale. The last increase in the overall average price was the February 4th sale, we’ve seen declines for eight auctions in a row.
The anhydrous milkfat price was 3.8 percent lower than the last auction and skim milk powder was 0.2 percent lower. Butter was up 1.8 percent, cheddar cheese and whole milk powder each increased 2.4 percent, rennet casein was 4.6 percent higher and butter milk powder jumped 17 percent. No lactose or milk protein concentrate was offered.
In response, cash cheese barrels on the Chicago Mercantile Exchange increased 2.75 cents, blocks increased 3 cents and butter gained a penny on Tuesday. Class III futures for July up the 75-cent daily limit and the August and September contracts each surpassed the $21 mark.
Conducted twice a month, dairy product processers and manufacturers from the U.S., Europe, India and Oceania offer nine products for sale on the Global Dairy Trade auction. The market is a price discovery mechanism for global dairy prices.
Cooperatives Working Together (CWT) has accepted 11 requests for export assistance from Dairy Farmers of America, Maryland & Virginia Milk Producers Association, Northwest Dairy Association (Darigold), Upstate-Niagara/O-AT-KA and Tillamook County Creamery Association to sell 669,764 pounds of Cheddar and Gouda cheese and 1.199 million pounds of butter (82% butterfat) to customers in Asia, Europe, the Middle East and North Africa. The product will be delivered June through November 2014.
Year-to-date, CWT has assisted member cooperatives in selling 57.073 million pounds of cheese, 47.924 million pounds of butter and 12.022 million pounds of whole milk powder to 40 countries on six continents