- GDT auction in Aug. 2021: on average -1% weaker, but butterfats in the clear plus
In the August 1st 2021 auction of Global Dairy Trade (GDT), prices were reduced by an average of -1%. The price decline has been continuing since mid-March 2021. The fallen prices for whole milk powder were the decisive factor once again. In contrast, significant surcharges were paid for butter. The throughput volumes have increased, but remain at a reduced level in line with the usual seasonal development. Whole milk powder (VMP) yielded repeatedly with an average of -3.8%. There were strong setbacks for the delivery months Sep and Dec with over 6% suffered. The absolute prices of $ 3,598 / t are only in the mid-range for several years. Skimmed milk powder (MMP) shows the first signs of recovery with +1.5%.The months of Nov (+ 3.4%) and Jan-22 (+ 4.9%) contributed to the positive result. The quotations are just in the high price range of the last 5 years. At $ 3,020 / t, the MMP prices remain above the EEX exchange rates ($ 2,922 / t) and the USA ($ 2,756 / t). Pure butter shows a slight upward trend again with +1.3 % on average. Only the month of Sep. was rated lower and offsets the higher result of the pre-auction. The average product price remains in the upper price segment at $ 5,668 / t. With an average price premium of + 3.8%, normal butter sets a strong accent. In particular, the earlier dates increased significantly by over + 4%. The absolute butter price remains at a high price level of $ 4,589 / t. EEX Leipzig is quoted at $ 4,621 / t and the Chicago rates are at $ 3,880 / t. The auction prices, which have been falling since mid-March 2021, show isolated upward trends in butterfats and later delivery dates. Further improvements can also be seen in EU and US prices.The new milk season has started in New Zealand. The climax is expected on Oct. 21. .
