GDT auction results from July 16, 2019: +2.7% out of the summer low The latest July 19 auction of the Global Dairy Trade (GDT) has taken the step from the seasonal summer low with an average of +2.7% done. Sales have now risen again to 25,000 t compared to the previous months. For the individual products and delivery months, there are mostly rising trends. Whole milk powder (VMP) reached a strong upturn for the first time with an average of + 3.6% in all delivery months. With the exception of Aug and Oct, surcharges are above the 4% mark. New Zealand as the main supplier is currently at the low point of milk deliveries. Notable replenishment comes in 2 months. In October, the highlight of the milk delivery is expected. Skimmed milk powder (MMP) achieved a price premium of 3.8% for the second time in a row. Outstanding is the Sept with a hefty surcharge of +6.4%. The back months show stable price increases. The price fixing clearly above the EU intervention line seems to be sustainable.Butter Reinfett has finally broken the price decline with an average of + 1.9% . If the eye is weak, the remaining delivery months remain stable at a stable rate. After all, the price level is in the lower range of the highest prices in recent years. Normal butter sat at a price premium of + 5.5% for the delivery month of August only once a clear opening. The following months stayed well above water. The average result of +1.7% indicates that the previous price decline has been overcome. The connection to former maximum prices is restored. The auction results clearly indicate the end of the seasonal price low in the summer season. Increased handling volumes are returning the market to stable to slightly rising prices. The expectation of the rising milk deliveries of New Zealand in Ok.-19 did not deter the buyers with increasing prices to put their order. It is expected that milk deliveries in some export-oriented production areas will tend to decline. In the future this could speak in favor of a closer market supply.
