GDT Auction of Mar 19, 2019: Normal Butter Rises by +9.3 % The Global Dairy Trade Auction (GDT) of 19 Mar 2019 remains in positive territory on average for all products and delivery months for the 8th consecutive year. This time it is +1.9%. Seasonally decreasing handling volumes of just under 22,000 tonnes signal a much tighter market situation than in the winter months. The background is the expiring milk production phase in New Zealand and other countries in the southern hemisphere. At the same time, there is still little evidence of a rising phase of milk deliveries in the north. However, there were considerable differences in the results between the individual product groups. Whole milk powder (VMP) delivered an average surcharge of + 4% over all delivery months up to and including Aug.2019. The front months were not far apart. Only the month of Aug closed much higher at +6.2%. Already at the pre-auction VMP was able to gain an average of 6%. The supply potential of New Zealand as the largest producer and exporter will become smaller and smaller over the next few months. Since you have to stock up on time.Skimmed milk powder (MMP) on the other hand had to yield again. In the pre-auction it was -4.3%. This time it is only -2.4% . A sharp drop in prices of -10.4 has to be fixed for the delivery month Apr.-19. Nevertheless, the prices still remain in the average range. Although butterfat also landed in negative territory with an average score of -3.1%, but the Vorauktion was clearly positive at 3.9%. Only the month of August was clearly down twice, at -4.4%. Normal butter, on the other hand, reached its second strongest price . After +3.7 in the pre-auction this time, on average, the delivery months were + 9.3 % (!). Up to the month of Jul.-19, the additional prices were between +8.4 and +10.8%. Especially in May and June were in the double-digit range. Thus, the butter prices are again aiming towards the highest prices of the last two years. Milk prices can currently rely on favorable price developments of VMP and normal butter in the export business.Butterfat does not play a significant role in the EU. However, the flagging MMP treatment brings a significant downside to the glass
