2nd GDT auction in December 2022: -3.8% At -3.8%, the second December 2022 auction of Global Dairy Trade (GDT) canceled out the previous upward trends of the two previous auctions. The milk powder prices set the direction. The butter fats followed at a certain distance. The slightly lower auction volume of around 28,724 t remains in the lower midfield compared to previous years. Whole milk powder (VMP) (approx. 55% auction share) more than compensated for the surcharges in the pre-auction with -4%. Prices in each delivery date except Jun-23 are all showing the same negative direction and magnitude. The economic difficulties of the main importer China are dampening demand. Absolute prices fall to $3,246/t, but remain just below the multi-year average. Skimmed milk powder (SMP) (about 25% share) had to accept the largest drop in price at -4.8%. The surcharges in the two pre-auctions have thus been smoothed out again. The price discounts increase until the later delivery dates of 2023.On average, however, the courses are still above the 5-year level. Absolute MMP prices fall to $2,265/t, below EEX prices ($3,076/t), and below Chicago listings ($3,030/t). Butterfat prices (around 10% share) had to completely give up the surcharges in the pre-auction at -2.2%. All delivery dates in the first half of the year are affected. The average product price falls to 5,675 $t, but remains within the 5-year average. Normal butter (approx. 8% share) has once again suffered losses of -2.6%. The result is reflected in all delivery months. At $4,602/t, the absolute butter price remains in the 5-year midfield. EEX Leipzig is quoted at the equivalent of $5,777/t and the Chicago rates are at $5,463/t. The average auction price level for dairy products is still around the good 10-year average. The price development shows a certain stability despite the weak demand caused by the global economy.
