First GDT auction in Nov. 2020: -2.0% on average; Strong demand for normal butter The first Global Dairy Trade (GDT) auction in November 2020, with an average of -2.0%, partially surrenders the positive results achieved so far. While skimmed milk powder suffered considerable price drops, normal butter once again provided an above-average price boost. With 35,418 t the handling volumes increased slightly again Vorauktion. Whole milk powder (VMP) was unable to maintain the increased pre-auction results with an average of -2.0% . In particular, December 2020 had to accept strong discounts. The delivery months in the new year 2021 gave up the profits of the pre-auction with an average of -1%. The absolute prices are above the multi-year average. Skimmed milk powder (SMP) suffered the greatest price setback with an average of -4.4% . In particular, the later delivery months solidified the price reductions.At the converted $ 2,722 / t, the SMP prices are still at a high level compared to the EU ($ 2,542 / t) and the USA ($ 2,336 / t). Butterfat has taken another step backwards with an average of -2.6% . In particular, the first few months around the turn of the year contributed to the negative result. In contrast, the discounts in the months of March / April 2021 were reasonable. The average product price of $ 4,002 / t remains in the good midfield. Once again, normal butter achieves an average premium of + 3.9 % over the pre-auction. Positive results were achieved in all delivery months. The absolute price is converted to $ 3,822 / t and is stabilizing again in the upper midfield. The latest auction results do not call into question the largely stable price development in the international milk market. The expectation of a favorable development in the New Year has not yet been refuted.The increase in milk deliveries in the major exporting countries is decreasing. Above-average growth rates have recently been observed in the USA (post-coronavirus effect) and New Zealand (seasonal increase). Only small increases can be seen in the EU. (see graphic below)
