- GDT Auction in Oct. 2022: -4.6%
The second Oct-2022 Global Dairy Trade (GDT) auction continues the downtrend in the pre-auctions by -4.6% on average. This time, skimmed milk and whole milk powder delivered the decisive downward swings. The auction volume of around 29,000 t for the season is well below the multi-year average. Whole milk powder (VMP) (approx. 50% auction share) fell significantly by another -4.4%. The course setbacks took place on all delivery dates. The delivery months in the new year were significantly worse. The decisive factor for the result is a restrained Chinese demand. Absolute prices fall to $3,421/t but still remain within the multi-year average. Skimmed milk powder (SMP) (25% share) suffered a sharp price drop of -6.9%. The price declines for the spring dates had an above-average negative impact. Nevertheless, a level above the 5-year average is maintained. Absolute MMP prices reach 3.$250/t and are below the EEX rates ($3,725/t) but above the Chicago listings ($3,406/t). Butterfat prices (10% share) had to make price concessions of -2.7% from the increases in the September auctions (together +18%). The deductions are distributed across all delivery dates. The median product price falls to $5,661/t, hovering just above the 5 year average. Normal butter (share 8%) fell again by -2.6% after the severe setback in the pre-auction. The Nov date was particularly weak. However, the result remains in the midfield of the last 5 years. The absolute butter price falls to $4,851/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 is approaching the 10-year average. The price development is clearly pointing downwards due to the weak demand caused by the economy .
