- GDT auction in Apr. 2023: +3.2%
The second Apr 2023 Global Dairy Trade (GDT) auction closed at an average of +3.2%. In contrast to the pre-auction, all partial results were positive. The big winners were MMP and both butterfat. The auction volume of around 22,713 t was again significantly smaller than in the previous auctions. Whole milk powder (VMP) (approx. 50% auction share) achieved the lowest price increase of +1%. The later delivery months were again weak. The VMP price level is $3,089/t. The reason for the price weakness is the low demand from China. With an average of +7% , skimmed milk powder (SMP) (approx. 25% share) has made up for a considerable part of earlier price reductions. Except for Jun-23, all markups reached more than +9%. However, the 5-year average was not quite reached. The absolute MMP prices reach $2,776/t and are above the EEX rates ($2,578/t) and the Chicago quotations of $2,494/t. Butterfat courses (approx.Share 10%) have made up for around half of the discounts of the pre-auction with +4.7%. The month Aug.-23 achieved the highest premium with +8.4%. The median product price rises to $4,981/t, just below the 5-year average. At +4.9% , normal butter (approx. share 8%) only had the price premiums in the pre-auctions by e.g. T. caught again. The wide range of results goes from +10.7% for May-23 to +0.4% for Sep-23. At $4,821/t, the absolute butter price remained just below the 5-year average. EEX Leipzig is quoted at the equivalent of $5,156/t and the Chicago rates are even at $5,258/t. The average auction result is approaching the 10-year average again.
