1st GDT auction in December 2022: +0.6% The first December 2022 auction of Global Dairy Trade (GDT) confirms the previous slight upward trend of the previous auction and achieved an average of +0.6%. Skimmed milk powder and butterfat delivered the decisive upward swings. The auction volume of around 29,570 t remains only in the lower midfield for the season. Whole milk powder (VMP) (approx. 50% auction share) essentially confirms the surcharges in the pre-auction. The courses in the individual delivery dates deviate only slightly from one another. Stable Chinese demand provides the background. Absolute prices rise to $3,400/t and stabilize on a multi-year average. At +1.7%, skimmed milk powder (SMP) (approx. 25% share) has not yet fully made up for the drop in price in the pre-auction. The price increases are reflected in all delivery dates, with an increasing tendency towards late spring/early summer 2023. The level above the 5-year average is thus expanded again. The absolute MMP prices reach 3,102 $/t and are above the EEX rates (3.$064/t) but below Chicago quotes ($3,163/t). Concentrated butter prices (around 10% share) continued their upward trend with +1.8%. In particular, the delivery dates of May/June 2023 show significant increases. The average product price rises to $5,797t and is around the 5-year average. Normal butter (about 8%) has fallen again by -1.9%. The result is reflected in almost all delivery months; albeit with significant discounts in the months of Apr./May-2023. At $4,725/t, the absolute butter price remains in the 5-year midfield. EEX Leipzig is quoted at the equivalent of $6,096/t and the Chicago rates are at $5,468/t. The average auction price level for dairy products is again above the 10-year average. Despite the weak demand caused by the global economy, the price trend is showing certain stabilization tendencies.
