First GDT auction in Aug 2020: - 5.1% on average; Milk powder pulls down The first Global Dairy Trade (GDT) auction in July 2020 closes again with a negative average result of -5.1%. This will interrupt the previous upward trend. This time the two milk powders were decisive in the price discount. At 32,696 tonnes , the volume handled increased by 36% compared to the pre-auction. Whole milk powder (VMP) suffered the biggest setback with -7.5%. The course discounts run through all delivery dates with a focus on Dec. 2020. The deciding factor for prices is the low willingness of Chinese buyers to invest more money. The price of $ 3,003 / t remains in the multi-year midfield. Skimmed milk powder (MMP) , with -4.6%, has to return the increases of the previous auctions once again. The range between the delivery dates ranges from -2.4% to - 7.6%. In this case, too, the December event ended worst. The MMP prices are converted with 2.$ 583 / t still higher than in the EU and US. Butterfat has recovered + 3.0% on average, the setbacks of Vorauktion again. The month of Oct.-20 with +6.8 5 stood out from the other delivery dates between +2.3 and -0.7%. The average product price is still in the good midfield. Regular butter loses again on average with -2.8%. The months of Dec.-20 were particularly weak with -8,% and Jan.-21 with -9.4%. The price of the converted $ 3,438 / t is lower than the listing on EEX Leibzig ($ 3,937 / t). US butter prices are even higher at $ 3,990 / t . The new auction results are strongly influenced by the usual weak demand around the turn of the year. The increased handling volume shows, however, that demand is definitely there.
