First GDT auction in October 2020: + 2.2% on average; Butterfats with a strong boost The first Global Dairy Trade (GDT) auction in September 2020 confirmed an upward trend with an average result of + 2.2% . After the two milk powders set the tone in the pre-auction, this time it is the butter fats that were instrumental in driving the share price up. With 35,090 t the handling volumes are attracted back to Vorauktion. Whole milk powder (VMP) continued the surcharges of the pre-auction with an average of +1.7% . The bottom seems to have passed. With the exception of December 20, the delivery months consistently achieved similarly high prices. At $ 3,041 / t, however, the price mark of $ 3,000 / t was exceeded. Skimmed milk powder (SMP) had to give up part of the profits in the pre-auction with an average of -0.9% . For the delivery month Nov.-20, however, there was still some catching up to do at +6.6% . At the converted $ 2,865 / t, the SMP prices are still at a high level compared to the EU ($ 2,542 / t) and the USA ($ 2,336 / t). Butterreinfett has made a significant step up with an average of +5.4% . Judging by the poor results of previous auctions, there was obviously a need for correction. The average product price is still in the good midfield. With a premium of + 8.4%, normal butter has apparently overcome its repeated price setbacks in the advance auctions. With the exception of the month of December to 20, the surcharges are always at the limit of the double-digit range. The converted price is $ 3,561 / t . Butter is currently traded at $ 4,103 / t on the EEX exchange in Leibzig. In Chicago , the price is $ 3,318 / t . The latest auction results confirm the previous observation of a trend towards rising prices in the international milk market. The turbulent effects of the Covid19 pandemic are increasingly taking a back seat. The market is currently delivering more balanced price ratios than was observed in the previous months. The signs of a favorable development in the New Year are confirmed.
