GDT auction continues to gain. At +0.9% on the pre- auction 14 days ago, the average auction results of the Global Dairy Trade (G DT) continue to point upward on the leading dairy products. The series of positive degrees has been going on since the beginning of December 2018 . The results thus trigger a signal for price developments in the international dairy business. The reason for the price increases is the sharp decline in milk deliveries in leading countries around the world, with a particular focus on Australia and New Zealand. In Europe, the drought-induced food shortage is slowing down further milk production. And even in the US , the perennial production boom has slowed. Last but not least, the disbanded MMP supplies, as a previous price brake, help pave the way for rising prices.This is impressively demonstrated by the rising GDMP knock-on prices for MMPs , which rose again by a further +2.8 % after a 10% increase in the pre-auction. Thus, the MMP courses are again above the multi-year average level. The auction results for VMP stabilize at the higher level achieved. The two butterfats scored only moderately with +0.7% and +1.2% respectively , but have already risen strongly in the pre-auctions. The prices are approaching the middle level of the highest price development in recent years. It is gratifying to note that the positive results can also be observed for the next 5 delivery months up to and including Jul-19 . Finally, in the months of May and June , the seasonal peak of milk deliveries in the northern hemisphere, which usually causes temporary price pressure, must be expected. The forward prices for dairy products at EEX-Leibzig show inthe same direction as quotes on the Chicago Stock Exchange (see attached bulletins)
