Second GDT auction in July 2020: - 0.7% on average; Butter prices pull down The second Global Dairy Trade (GDT) auction in July 2020 ends with a negative average result of -0.7%. This will interrupt the previous upward trend. The decisive factor in the discount was the butterfat. At 23,955 t , sales are back at a reduced level. Whole milk powder (VMP) achieved a slight plus of +0.6%. The high markups in the pre-auction set a high price level, which leaves little scope for price changes. China's demand to overcome the Covid19 pandemic is decisive for the price. The price of $ 3,218 / t remains in the upper middle range. Skimmed milk powder (MMP) has to give up some of the increases in the pre-auctions with -0.5%. The range of delivery dates ranges from +1.2% to - 2.2%. At the equivalent of $ 2,680 / t, MMP prices are still higher than in the EU and the USA.Butterfett continued to decline at -2.8% on average. In the individual delivery months, the price range goes from +3.2% in Aug.20 and to -3.6 in Sep.-20. At € 3,567 / t , the product remains in the lower middle. Normal butter loses with an average score of -4.9% the surcharge in the Vorauktion. In the first 3 months of delivery price reductions of 7.3% in Aug-20 to -6.4% in Sep.20 were made. The price of the equivalent of $ 3,533 / t is lower than the listing on EEX Leibzig ($ 3,937 / t). US butter prices are even higher at $ 3,990 / t . The new auction results are to be seen against the background of the pre-auction with strong price increases. The reduced handling volume underlines the limited supply situation of the oceanic 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 .
