GDT Auction Up - Butter Prices Reach Top Level Again - MMP Prices Stay Below Average The results of the biweekly Global Dairy Trade (GDT) auctions have been consistently in the plus range since December of last year. This time, however, only a modest +0.8% was achieved for pre-auction . But the dairy market is facing the seasonal supply high in the northern hemisphere. The comparatively small auction volumes of just 17,850 t contributed to the positive result. However, the increased full milk powder price of the pre-auction could not be maintained at -1.3% . The demand, especially from China, was not big enough. The results of the early delivery months were still quite moderate, but Aug. and Sep.-19 drove the result significantly downwards. The background to this is provided by the seasonal New Zealand offer high during this period with expected high supply quantities. The relapse of skimmed milk powder prices (MMPs) at the last auction was partially offset by a rise in prices of + 1.8% on average .All delivery months remained in positive territory. MMP prices remain at a low level because sales compete with the difference in protein quality for low-cost soybean meal as a protein carrier. Butter is scarce worldwide and is expected to remain for a while. The auction surcharges averaged +3.7% for butterfat and 5.8% for normal butter . Butterfruze prices increase from delivery month to delivery month and reach the highest prices of +8.9% in Sep.-19. Normal butter has already risen in the Voraktion by about 9.5%. In this auction another +5.8% was added. In particular, the early dates rose significantly, from +6% to just under 8%. Average butter prices are already at the peak level of recent years. Milk prices are kept high mainly by the high price of fat, while the protein value component slows down a larger price increase.On the EEX-Leibzig , the butter futures are currently trading at € 4,251 / t, up from € 4,525 / in dec. The MMP prices rise from the current € 1,925 / t to € 2,050 / t in the spring months of 2020. The liquid milk contract is hardly ever used.
