GDT Auction of May 07, 2019 Remains in Short Range The results of the biweekly Global Dairy Trade (GDT) auctions are still in the marginal plus range at the beginning of May 2019 at +0.4%. The milk market in the northern hemisphere is in the middle of seasonal supply highs, while in the southern hemisphere the delivery low is reached. The comparatively small auction volumes of only 15,375 t contributed to the fact that on average a positive result could be maintained. However, the full milk powder price of the pre-auction could not be maintained again at -0.5%. Demand, especially from China, remains weak. The results of the back delivery months have lowered the average values considerably. The background to this is provided by the expected seasonal New Zealand supply in the next period. The skimmed milk powder prices (MMP) show a strong +2.8% on the one hand repeated strong upward trends, albeit still on a low level. The back delivery months prove a surprisingly firm positioning. Overall, the MMP price is moving up from its previous low-price phase.Butterfat remains scarce and expensive. The repeated auction surcharges of an average +1.4% stabilize the prices in the highest price range of the past years. In particular, the Jul./Aug.-19 delivery dates contributed to the average result with significant mark-ups. After the 10% increase in the two pre-auctions , normal butter has just been able to maintain the high price level. Average butter prices are at the peak level of recent years. The delivery month June-19 has contributed significantly. For the milk prices in the northern hemisphere, the GDT results provide welcome support against a possible price drop, which is usually observed at this time of the year. However, the effects of the drought in this country are still felt.
