First GDT auction in July 2020: +8.3% - whole milk powder driving factor The first July 2020 auction of the Global Dairy Trade (GDT) continues the upward trend of the pre-auctions with an increase of +8.3% . The main driving force is whole milk powder with a double-digit surcharge. At 25,688 t , sales are on the increase again. Whole milk powder (VMP) achieves a significant improvement once again with +14% on average. The Aug appointment stood out from other results with a 24.5% surcharge. China's strong demand for the end of the Covid19 pandemic is decisive for the price. The price of $ 3,208 / t returns to the upper midfield after a long downhill run. Skim milk powder (MMP) shows further increases with +3.5% after small resets in the pre-auction. The range of delivery dates ranges from +1.4% to +5.3%. MMP prices, at the equivalent of $ 2,694 / t, are significantly higher than in the EU and the USA.The availability of goods in the South Asian region falls significantly more tightly than in the northern hemisphere with the surplus areas USA and EU. At -0.2% on average, pure butter was barely able to maintain the previous stabilization tendencies. The range extends from +1.2 to -1.3. At € 3,567 / t , the product remains in the lower middle. With an average result of +3.0%, normal butter more than loses the setback of the previous months. In all delivery months, positive surcharges between +1.7 and +4.7% were achieved. The price of the equivalent of $ 3,717 / t is lower than the listing on EEX Leibzig ($ 3,937 / t). US butter prices are even higher at $ 3,990 / t . The current auction results are shaped by China's buying behavior. The restarting Chinese economy is leading to more intensive import transactions, which primarily relate to milk powder in the forward delivery dates.The seasonally only slowly increasing handling volume underlines the limited supply situation of the ocean supplying countries for the Asian region. In the large production areas in the northern hemisphere , the first clear signs of a price improvement can be seen .
