Milk Powder At 7-Year High After Surprise Shortfall In Global Production

Milk powder is used to make milk, and it's also a common ingredient in a variety of foods including baked goods, soups and processed items.

A surprise shortfall in global milk production has international purchasers scouring for powder, the most easily exported dairy product.

Futures for nonfat dry milk reached 135 cents per 100 pounds, the highest since August 2014. The rise is occurring amid disappointing milk production in Europe and New Zealand, two of the world's shipping powerhouses for dairy. There are signs buyers are scrambling.

U.S. exporters are "reporting a surge in inbound inquiries from international customers for milk powder, butter and cheese," said Matt Gould, editor of The Dairy Market Analyst, in a report.