1st GDT Auction in Jan 2023: -2.8% - high turnover at the beginning of the year . Skimmed milk powder and butterfat delivered the decisive downward swings. The auction volume of around 33,478 t was surprisingly large. Whole milk powder (VMP) (approx. 50% auction share) more than had to give up the low surcharges in the pre-auction. With the exception of the delivery month Jun.-23 (-4.8%), discounts were within narrow limits. Chinese demand is the decisive factor. Absolute prices fall to $3,208/t, remaining within the multi-year average. Skimmed milk powder (SMP) (about 25% share) suffered a significant drop in price of -4.3%. The price reductions are reflected in all delivery dates. However, the level above the 5-year average remains. Absolute MMP prices reach $2,838/t, below EEX prices ($3,064/t) but below Chicago listings ($3,163/t). Butterfat courses (approx.Share 10%) have experienced the highest price reductions with -5.1%. In particular, the delivery dates of May/July 2023 show significant deterioration. The average product price increases to $5,395/t and is still within the 5-year average. Normal butter (approx. 8% share) fell again with -2.8%. In particular, the early delivery dates were rated worse than the late delivery months. At $4,479/t, the absolute butter price remains in the 5-year midfield. EEX Leipzig is quoted at the equivalent of $6,096/t and the Chicago rates are at $5,468/t. The average auction result is within the 10-year average.
