- GDT auction in Feb. 2023: +3.2%
The first Feb 2023 Global Dairy Trade (GDT) auction breaks the previous downtrend of the pre-auctions with a significant +3.2% on average. Milk fats in particular have more than made up for their earlier setbacks. Whole milk powder also achieved significant premiums. The auction volume of around 32,582 t was repeatedly large. Whole milk powder (RMP) (approx. 50% auction share) was able to recover significantly at +3.8% after the sharp price drops in the previous auctions. Surcharges were achieved in all delivery months. A significant increase in Chinese demand determined the price. Absolute prices rise to $3,329/t, remaining within the multi-year average. Skimmed milk powder (SMP) (about 25% share) was able to maintain its narrow pre-auction result with an average of 0%. The price reductions can be found in the front delivery dates, while the back months achieved premiums. The level above the 5-year average is retained. The absolute MMP prices reach 2.$829/t and are above the EEX rates ($2,675/t) and the Chicago listings ($2,674/t). Clarified butter prices (approx. 10% share) experienced significant price increases of +4.8%. In this case, too, the mark-ups in the later delivery dates were greater than in the earlier months. The average product price increases to $5,586/t and is in the good 5-year average. Normal butter (around 8%) received the highest price premiums at +6.6%. The price increases were comparable in all delivery months. At $4,745/t, the absolute butter price remains in the 5-year midfield. EEX Leipzig is quoted at the equivalent of $4,895/t and the Chicago rates are even at $5,325/t. The average auction result is just above the 10-year average.
