- GDT auction in Sep. 2022: +4.9%
The first Global Dairy Trade (GDT) Sep 2022 auction saw prices of all dairy products rise by 4.9% after the 5-time setback in the past. After the big losses in the pre-auction, butterfat and whole milk powder were the mainstays this time. Auction volumes have fallen unusually for the current season. Whole milk powder (RMP) (approx. 50% auction share) achieved a respectable result with an average of +5.1%. The courses in the individual delivery dates show an upward trend in the coming months. The reasons for this are the tight supply and a lively Chinese demand. The absolute prices rise to $3,610/t and are in the good multi-year average. Skimmed milk powder (SMP) (share 25%) was able to maintain or improve its position once again after the reductions in the pre-auctions with +1.5%. The listings are again just in the upper price segment of the last 5 years. The absolute MMP prices reach $3,575/t and are below the EEX prices (3.$645/t) but above Chicago quotes ($3,457/t). After the significant price reductions in the pre-auction, butterfat prices (share 10%) have this time achieved far above-average growth of +13.9% on average. The median product price rises to $5,671/t, hovering just above the 5 year average. After the previous setbacks, normal butter (share 8%) has once again been able to rise again with a current +3.3%. The courses remain in the upper midfield. The results of the individual delivery months differ only slightly. The absolute butter price rises to $5,369/t. EEX Leipzig is quoted at the equivalent of $7,221/t and the Chicago rates are at $6,803/t. Despite limited demand, the global decline in dairy production is leaving its mark. In the Asian region in particular, demand is greater than supply. The scarcity of fodder in the northern hemisphere will contribute to further bottlenecks in future supplies.
