1st GDT Auction in Nov 2022: -3.9% The first Nov 2022 auction of Global Dairy Trade (GDT) continues the downward trend in the pre-auctions by an average of -3.9%. Skimmed milk and whole milk powder repeatedly delivered the decisive downward swings. The auction volume of around 28,867 t for the season is still below the multi-year average values. Whole milk powder (WMP) (approx. 50% auction share) fell significantly by another -3.4%. The course setbacks took place on all delivery dates. The decisive factor for the result is a restrained Chinese demand. Absolute prices fall to $3,279/t but still remain within the multi-year average. Skimmed milk powder (SMP) (25% share) suffered another sharp price drop of -8.5%. The price declines are reflected in all delivery dates. Nevertheless, a level above the 5-year average is maintained. The absolute MMP prices reach $2,972/t and are below the EEX prices ($3,725/t), and the Chicago quotations ($3,406/t).Butterfat prices (10% share) had to make price concessions of -1.7% from the increases in the September auctions (together +18%). The discounts take place increasingly in the new year. The median product price falls to $5,562/t and is now only in the 5-year average. After the setbacks in the pre-auctions, normal butter (share 8%) was able to hold its own with +0.2%. The positive result was provided by the rising prices in April and May 2023. The result remains in the middle of the last 5 years. The absolute butter price falls to $4,868/t. EEX Leipzig is quoted at the equivalent of $7,208/t and the Chicago rates are at $6,505/t. The average auction price level of dairy products falls slightly below the 10-year average. The price development is clearly pointing downwards due to the weak demand caused by the economy.
