- GDT auction in Sep. 2022: +2%
The second Sep 2022 auction of the Global Dairy Trade (GDT) has again caused higher prices by an average of +2% after the 5-time setbacks in the past. Butterfat and whole milk powder were again the mainstays. The auction volumes are unusually low for the current season. Whole milk powder (RMP) (approx. 50% auction share) again achieved a strong result with an average +3.7%. The courses in the coming delivery dates show a consistently positive trend. The reasons for this are the tight supply and an increasing demand from China. The absolute prices rise to $3,733/t and are in the good multi-year average. Skimmed milk powder (SMP) (share 25%) was not able to maintain its position after the reductions in the pre-auctions with -0.7%. With the exception of the earlier dates, the quotations are in the negative range. Nevertheless, a level above the 5-year average is maintained. The absolute MMP prices reach $3,547/t and are below the EEX prices (3.$725/t) but above Chicago quotes ($3,462/t). Butterfat courses (share 10%) once again achieved above-average growth of +4% (pre-auction +13.9%)% on average. However, the later delivery dates fall slightly. The median product price rises to $5,901/t, hovering just above the 5 year average. Normal butter (share 8%) was not quite able to hold its position. In particular, the two front dates have pulled the average value down sharply. However, the result remains in the upper midfield of the last 5 years. The absolute butter price falls to $5,356/t. EEX Leipzig is quoted at the equivalent of $7,250/t and the Chicago rates are at $6,816/t. The negative price trend of the summer months was replaced by two positive auction results in September 2022. The background is a scarce supply with demand picking up again, especially from China.
