Second GDT auction in May 2020 ended with an increase of 1% The second May 2020 auction of the Global Dairy Trade (GDT) fully offset the decline in the pre-auction with an increase of +1%. The high surcharges for skimmed milk powder contributed significantly to the result; pure butter is also impressive. At 16,787 t, sales are in the usual seasonal low. Whole milk powder (VMP) remains in a weak average price range. The positive result of the pre-auction could not be kept. The drop in the surcharge of 0.5% depresses the VMP price to the equivalent of € 2,478 / t. The range ranged from +1.7% in August to -3.9% in October. In particular, the back delivery dates have dragged the price level down sharply. As a rule, China is the main buyer for this product. Skimmed milk powder (MMP) , on the other hand, received a strong boost with +6.7%. With the exception of the August date, the markups were consistently high. MMP prices, at the equivalent of € 2,358 / t, are significantly higher than in the EU.The availability of goods in Asia is much scarcer than in the EU and the USA. Pure butter has stabilized somewhat after the two setbacks in the pre-auctions. In particular, the delivery months of June with +5.8% and August with +5.7% have had a decisive influence on the average result of +2.7%. At € 3,777 / t , however, only the lower midfield is reached. Regular butter loses ground again with an average result of -1.9%. The differences between the individual delivery dates remain manageable. The price of the equivalent of € 3,521 / t falls to the level in the EU and the USA. Against the backdrop of market and price turmoil as a result of the COVID19 pandemic and a usual seasonal weakness , the auction results are in an astonishingly stable framework. The low seasonal handling volume underlines the not too abundant supply situation in Asia.In contrast, the increased volumes in the northern hemisphere in the early summer months led to considerable price pressure.
