- GDT Auction in Jun. 2023: 0%
The second June 2023 Global Dairy Trade (GDT) auction may have halted the previous downtrend averaging 0.0%. The big winner this time was regular butter, while skimmed milk powder was neglected both in terms of volume and price. The auction volume of around 20,372 t was unusually low. Whole milk powder (VMP) (approx. 50% auction share) has maintained the level after the losses in the pre-auction. Only the delivery month Nov-23 stood out with a modest +1.6% upwards. The expectation of an improvement in prices in the autumn months has not been confirmed. The weakening of the economy of the largest buyer China could be the reason. The VMP price level is $3,172/t. Skimmed milk powder (SMP) (about 25% share) was not able to match the results of the pre-auction with -2.3%. Price reductions had to be accepted in all delivery months. The 5-year mean was again not reached. The absolute MMP prices reach 2,667 $/t and are above the EEX prices (2.$646/t) and the Chicago quotations of $2,574/t. With +0.5%, butterfat prices (about 10%) continued the upward trend of the pre-auction with a modest +0.5%. The decisive impetus comes from the last months of October to December. The average product price rises to $4,728/t, exceeding the 5-year average. Normal butter (approx. 8% share) again significantly increased the price premiums of the pre-auction with +5.5% on average. The months of August to October 2023 achieved particularly high premiums. At $5,379/t, the absolute butter price is rising over the 5-year average. EEX Leipzig is quoted at the equivalent of $5,379/t and the Chicago rates are even at $5,368/t. The average auction result is approaching the 10-year average again.
