Penultimate GDT auction in 2020: + 4.3% on average; VMP with high price surcharges The penultimate 2020 auction of Global Dairy Trade (GDT) marks an encouraging preliminary end of the year with an average of + 4.3% . Significant price surcharges were achieved in all sectors and, with one exception, in all delivery months. With 32,062 t the handling volumes over the Vorauktionen have been significantly lower. Whole milk powder (VMP) achieved the highest surcharges with an average of + 5% . In all delivery months, the surcharges remained well over 4.4%. The rising prices in the new year suggest that prices will remain high. The absolute prices of $ 3,182 / t are still above the multi-year average. Skimmed milk powder (SMP) achieved an average of +3.6%, a further improvement over the mediocre results of previous auctions.In all delivery months, surcharges of more than 2.1% were achieved. In connection with the VMP results, the positive surcharges in the first few months of the new year are to be seen as favorable conditions. At $ 2,889 / t, the SMP prices are still at a high level compared to the EU ($ 2,542 / t) and the USA ($ 2,336 / t). Butterfat has made a further step to the top to Vorauktionsergebnis of +4.1%. This time the average surcharges of +2.6% take the prices above the middle field again. For the month of Jan.-2021 a correction to the pre-auction was due. The other delivery dates achieved consistently positive results. The average product price of $ 4,278 / t continues to move towards the upper midfield. Normal butter continued to assert itself well with an average of +3.8% . While the dates in the back were rather weaker this time, the dates in the front increased significantly. This is a compensation for the result of the pre-auction. The absolute price is converted to 3.986 $ / t and stabilizes further in the upper midfield. The latest auction results continue the predominantly slightly rising price trend in the international milk market . The main driving force is the demand from the Asian region, with a focus on China. The expectation of a favorable development in the New Year is entirely justified.
