GDT auction from 02. Jan.2019: 3rd price increase in a row - low turnover
The latest Global Dairy Trade Auction (GDT) in the New Year 2019 continues the price increase from the two dates in December of the previous year with +2.8%. Striking is the low handling rate of only approx. 28,500 t. Outstanding are the results for deliveries in February 2019.
In detail:
Whole milk powder prices experienced modest growth of only + 1.2% on average. In almost all delivery months, the premiums for the pre-auction did not exceed +2.2% for Apr.2019. The international supply seems to be sufficient.
By contrast, in the skimmed milk powder market, the abundance of government and private stocks is being noticeably reduced. For fresh goods you have to invest more, if you want to come to the course. The average of all delivery months was + 7.9 % and for the month of Feb. 19 it was + 16.7%. The other delivery months also achieved considerable surcharges of between +6 and +8%. This seems to be an exit from the descent of several years to be achieved.
The two butterfats also posted strong gains of + 3.9% . In this case, too, Febr.-19 bid prices almost doubled, from +6.3 to +8%. There seems to be a need to catch up with the goods in front of them. In contrast, the rear dates were rated significantly weaker in anticipation of the summer delivery high in the northern hemisphere.
The auction results confirm once again that in the coming months, both in the northern and in the southern hemisphere, a seasonal decline in milk production is expected. In contrast, demand seems to be very stable. Such a market constellation drives up the prices of dairy products. For the price of milk, it is of particular importance that the braking factor skimmed milk powder is relaxed . Now, both milk ingredients together make the way up. How high, will turn out in the further market events.
