- GDT auction in May. 2023: +2.5%
The first April 2023 auction of the Global Dairy Trade (GDT) has repeatedly closed positively with an average of +2.5%. The big winners were VMP and regular butter. The auction volume of around 23,265 t was again significantly smaller than in the previous auctions. Whole milk powder (VMP) (approx. 50% auction share) achieved the highest price increase of +5%. The later delivery months have caught up significantly compared to the pre-auction with a focus on Aug.23. The VMP price level is at $3,230/t. The end of the New Zealand milk season is being met by revived Chinese demand. Skimmed milk powder (SMP) (about 25% share) has once again increased by +1.5% after earlier price reductions. The 8% surcharge for the Jun.23 delivery was outstanding. The 5-year mean has not yet been fully reached. The absolute MMP prices reach $2,787/t and are above the EEX rates ($2,638/t) and the Chicago quotations of $2,612/t. Butterfat courses (approx. 10% share) have -2.4% approx.half of the surcharges of the pre-auction were nullified. The highest price reduction of -9.5% for the month of June 23 smooths out the result of the pre-auction. The median product price increases to $4,832/t, falling below the 5-year average. At +2.4% , normal butter (about 8%) has repeatedly made up for the price premiums of the pre-auction. The price increases for July and August, the two months with the lowest production in New Zealand, are striking. At $4,947/t, the absolute butter price almost reached the 5-year average. EEX Leipzig is quoted at the equivalent of $5,083/t and the Chicago rates are even at $5,387/t. The average auction result is approaching the 10-year average again. The price weakness of the past few months seems to have been overcome.
