- GDT auction in March 2021 with a bang + 15% on average;
The first March 2021 auction of Global Dairy Trade (GDT) continues the uninterrupted upward trend of the pre-auctions since December 2020 with a strong + 15% on average. Whole milk powder and normal butter were once again the driving force. The handling volumes take over the Vorauktionen seasonally further. Whole milk powder (VMP) continues its upward trend with above-average surcharges of + 21% with a strong jump. The surcharges are over 20% in all delivery dates. That speaks for a sustained increase in demand. In the background, it is China with a clearly growing need for imports. The absolute prices of $ 4,364 / t are moving towards top prices in a multi-year comparison. Skimmed milk powder (SMP) has improved its tight pre-auction results by an average of +3.5%.The later months show significant surcharges and thus signal that the usually weak summer months are on the rise. At $ 3,302 / t, the SMP prices are still at a low level compared to the EU ($ 2,888 / t) and the USA ($ 2,598 / t). With + 7.4%, concentrated butter sets a clear accent in the direction of rising prices. Except for Aug-21, the markups are between 7 and well over 8% . The butter fat is extremely scarce in Asia. The average product price increased again to $ 5,929 / t and is therefore at the top level. Normal butter achieved the second best result with + 13.7% The delivery month of May. once again brought the highest surcharge at + 16.1%. The absolute price is fixed at $ 5,826 / t in the category of maximum prices. EEX Leipzig is quoted the equivalent of $ 4,749 / t and Chicago prices are $ 3,827 / t. The latest auction results with repeatedly strong price markups indicate that dairy products are in short supply in international trade. The availability of dairy products is limited, especially in Asia. The milk season is coming to an end in the southern hemisphere. In the northern hemisphere, one usually expects a seasonal increase in delivery. In the EU and the USA, the butter prices lag significantly behind. Experience has shown that this situation does not last long due to the competition and the courses are catching up. However, the comparatively high euro exchange rate is a stumbling block in the export business.
