- GDT Auction in Aug. 2022: -2.9%
The second Aug 2022 Global Dairy Trade (GDT) auction has reduced prices for all dairy products for a 5th consecutive year. Butterfat and whole milk powder had to accept the biggest price setbacks in alignment with the other prices. The auction volumes increase seasonally. Whole milk powder (RMP) (approx. 50% auction share) fell again with more than -3.5%. The listing losses are distributed relatively evenly over the entire delivery dates. Absolute prices fall to $3,415/t but are still within the good multi-year average. China's weak demand due to unfavorable economic development was a major factor. Skimmed milk powder (SMP) (25% share) was able to maintain its position after the reductions in the pre-auctions with +0.1%. Prices fall to the average range of the last 5 years. The absolute MMP prices reach $3,524/t and are below the EEX prices ($3,551/t) and the Chicago quotations ($3,700/t).Butterfat prices (share 10%) suffered considerable losses this time after the moderate price reductions in the pre-auction. Price reductions averaged -9.8%. The median product price falls to $4,990/t, hovering at the 5 year average. Normal butter (share 8%) has stabilized after the previous setbacks with a current +0.2%. The courses remain in the upper midfield. The results differ only slightly in the individual delivery months. The absolute butter price rises to $5,204/t. EEX Leipzig is quoted at the equivalent of $7,050/t and the Chicago prices are falling at $6,338/t. The global weakness of the world economy reduces purchasing power and demand. China plays a crucial role in the milk sector.
