Skim milk powder climbed 10.3% to $1.09/lb. This increase may be in part due to the European Union’s dwindling inventory of SMP stocks, now down 94% from its peak a few years ago. That high level of stocks was a burden on market. No more. There are only 49 million pounds of SMP left in the EU inventory, and that likely will clear the market by the end of January. Milk production is also down in the Germany, France and the United Kingdom, and so rebuilding those stocks is unlikely any time soon.

Butter prices on the GDT were up 4.6% to $1.93/lb. Cheddar cheese climbed 4.2% to $1.59/lb and whole milk powder was up 3% to $1.26/lb. U.S. prices are competitive for cheese and skim milk powder, but are above world prices for butter and whole milk powder.