GDT Auction with +2% - MMP and Butter with Above -Average Price Increases The first Sep. 2019 Global Dairy Trade (GDT) auction has set the first signs of an autumnal price increase with an average result of +2.0%. This should overcome the summer low phase. At 37,345 t, sales remain at a significantly higher level than at previous auction dates. Skimmed milk and normal butter have contributed significantly to the positive result. Whole milk powder (VMP) was able to follow the price increases of the last auctions with an average of +1.9% on average of all delivery months after a short price decline. The spring months have made up for the setbacks of the pre-auction. This should be the main buyer China responsible. In New Zealand, the milk season has started again; the season's highlight is expected in Oct.-19. Skimmed milk powder (MMP) is clearly rising at an average of + 3.4% . The Febr.2020 delivers a veritable bang with a surcharge of +7.0 %. Also the dec.-19 was above average at +4.6 %. The MMP courses are again based on the multi-year averages. Butterfat has been able to assert itself with an average of 0.6% . In addition, the later dates of Feb. and Mar. 2020 made a significant contribution, with hefty surcharges up to + 3.3% and + 4.6%, respectively. The courses still remain in midfield normal butter reached + 2.7% on average, a strong price boost. Outstanding were the two months of Nov. and Dec 2019 with surcharges of +3.5 and 4.2%, respectively. Background should be the Vorweihnachtsgeschäft .. Nevertheless, the butter price is still moving in the upper midfield of the last 5 years. The auction results signal a seasonal price increase after the summer downturn. Milk powder prices stabilize at a good average level. Butter prices are showing an upward trend again. In New Zealand , they are heading for the seasonal peak of milk deliveries in October. In the northern hemisphere, the high season of milk delivery is over.In the major milk exporting countries of the world, the milk supply fell by 6%. The import activity of China is currently somewhat restrained. In the coming months, Chinese imports should continue to rise due to the decline in domestic production. Missing pork due to the ASP is compensated by increased cow slaughtering. In the USA, the butter prices remain at a stable average exchange rate due to the deficit situation there. In contrast, EU prices compete with NZ prices at a reduced level.
