- GDT Auction in Jan 2023: -0.1%
The second Jan 2023 Global Dairy Trade (GDT) auction slightly continues the previous downward trend of the pre-auction and returns -0.1% on average. Both milk fats contributed to the price reduction. The auction volume of around 31,872 t was repeatedly large. Whole milk powder (VMP) (approx. 50% auction share) was able to hold its own after the strong price drops in the pre-auction with +0.1%. The strong price decreases of the delivery month Jun-23 (-4.8%) last time were mitigated by a plus of +2.3%. The other results are within a narrow range. The still subdued Chinese demand determined the price. Absolute prices rise to $3,218/t, remaining within the multi-year average. Skimmed milk powder (SMP) (about 25% share) suffered further price declines of -0.3%. The price reductions are reflected in all delivery dates with the exception of the Feb. 23 date. However, the level above the 5-year average remains.The absolute MMP prices reach $2,842/t and are below the EEX prices ($2,907/t), and the Chicago quotations ($2,872/t). Concentrated butter prices (around 10% share) experienced further price reductions of -0.9%. Only the delivery dates June/July 2023 achieved surcharges after heavy discounts in the pre-auction. The median product price falls to $5,337/t but is still within the 5 year average. Normal butter (approx. 8% share) fell again with -0.6%. With the exception of the Feb 23 date, the narrow range months were rated worse. At $4,449/t, the absolute butter price remains in the 5-year midfield. EEX Leipzig is quoted at the equivalent of $5,407/t and the Chicago rates are at $5,126/t. The average auction result is almost exactly in the 10-year average.
