Milch Cockpit, 20.03.2018

GDT auction result negative, but with correction factor   The Global Dairy Trade auction , which took place on March 20, 2018, closed on average at -1.2% . The result was not entirely unexpected, because at the pre-auction on March 6, there has been an unusual increase in MMP UHT , which is due to the research done on a short-term short supply in the high-quality form of MMP individual consumers . The current auction has led to an equally drastic correction in the monthly MMPs concerned. Nevertheless, the result remains limited satisfactory given the very tight turnover of only 18.635 t in comparison to previous volumes, which were twice as high. On the other hand, since the beginning of the year, the results have clearly indicated that a feared sharp price decline, as in 2016, is not expected. Whole milk powder sales are mostly quiet with little change in monthly prices. Skimmed milk powder has returned to its usual low price. The price-cutting stocks are still in the EU and the US. Falling volumes from New Zealand are too small to bring about an immediate, fundamental turnaround. The MMP problem will last for a longer time.Both butterfats are still trading at their exceptionally high levels . Milk fat remains scarce worldwide and is paid accordingly high. That also seems to be holding for the coming months. For now, the expected seasonal increase in milk deliveries in the northern hemisphere seems to leave little impression on prices. Despite the negative auction results, the situation on the global milk market will be of little concern.