Modernized Federal Milk Marketing Order system needed

The International dairy market saw more good news on May 2 as the Global Dairy Trade weighted average rose 2.5 percent following the 3.2 percent jump on April 18. Traders brought 51.3 million pounds of product to market, up from 50.1 million on April 18, and the average metric ton price climbed to $3,506 U.S., up from $3,362.

The gains were led by whole milk powder, up 5 percent, following a 1 percent advance on April 18. Skim milk powder was up 1.5 percent after jumping 7 percent last time. Buttermilk powder inched 0.8 percent higher. GDT cheddar was up 4.5 percent after jumping 5.7 percent last time, and butter was up 2.4 percent following a 4.9 percent advance. The one decline was on anhydrous milkfat, down 2.4 percent, after advancing 4.7 percent in the last event.

StoneX Dairy Group says the GDT 80 percent butterfat butter price equates to $2.1893 per pound U.S., up 5.6 cents after gaining 10 cents on April 18, and compares to CME butter which closed May 5 at a pricey $2.4450. GDT cheddar, at $2.069, was up 6.8 cents, and compares to May 5’s CME block cheddar at a bargain $1.6125. GDT skim milk powder averaged $1.2641 per pound, up from $1.259, and whole milk powder averaged $1.465 per pound, up from $1.4012. CME Grade A nonfat dry milk closed on May 5 at $1.1975 per pound.

Dustin Winston reports, “Quantity offered in this auction fell by roughly 500 metric tons while purchase quantity grew by roughly the same level. North Asian purchases grew from the last event’s levels, but were down from a year ago.”

Betty Berning, contributing dairy economist with HighGround Dairy,