GDT Auction mid-May 2018 + 1.9% on average - MMP and butterfat drive sales The Global Dairy Trade auction ended in May 2018 with a 1.9% increase in sales volumes . So that the negative result of the pre-auction 14 days ago more than overcompensated. On the supply side was in addition to the New Zealand dairy Fonterra also involved the European Arla. Different results were achieved for the individual dairy products. However, there was no pronounced negative trend.For whole milk powder (VMP) , the level was kept short with an average result of -0.2% for the pre-auction. Significant increases in the early delivery dates were mitigated by the later months with the focus on the month of August. The positive trend for skimmed milk powder (MMP ) continues with an average increase of + 3% . In this case as well, the early delivery months were decisive for the overall result. New Zealand expects the lowest milk deliveries throughout the year during these months. The MMP courses reach the magnitude of the EU intervention prices of 170 € / dt.In the case of butterfat , the setback at the last auction was more than made up for this time at + 5.8% . Outstanding was the delivery month Jul with an increase of 10.5%. There was no delivery date with negative results. This means that the butter clean fat prices are again in the top range. Normal butter was again able to grow steadily at + 2.4% . The results of the last delivery months, with a plus of more than 3%, were particularly strong. This is a positive outlook for the fall of 2018. GDT auction results underscore once again that the global dairy market is not oversupplied .Special scarcity conditions are evident in the case of milk fats, which continue to move to well above average levels. In the low MMP prices comes upward movement . Although EU intervention stocks still act as a drag factor, on a global scale they are decreasing. The sharp decline in milk deliveries in New Zealand, with their emphasis on exports, is proving noticeable countervailing forces in the market.
ZMP Live Expert Opinion
In the milk sector, the positive price trend prevails. This is all the more remarkable as in the northern hemisphere the culmination of milk delivery is yet to come. However, falling milk volumes in the South are causing a noticeable deficit in global supply. The price pressure of high MMP supplies is weakening. The price prospects for the next few months are not bad, even if there are still a few critical months left in this country.
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