- GDT Auction in Apr. 2023: - 4.7%
The first Apr 2023 Global Dairy Trade (GDT) auction closed at an average of -4.7%. All partial results were in the negative range. The big losers were concentrated butter and whole milk powder. In a long-term comparison, the GDT index has slipped back below the 10-year average. The auction volume of around 23,828 t was significantly smaller than in the previous auctions due to weak demand. Whole milk powder (VMP) (approx. 50% auction share) had to accept a significant price drop of -5.2%. The delivery month Sep. 2023 had the lowest result at -6.6%. The VMP price level is now only at $3,053/t. The reason for the price weakness is the low demand from China. Skimmed milk powder (SMP) (about 25% share) has continued the downward trend since autumn 2022 with an average of -2.5%. Price reductions of between -3.1 and -4.6% can be seen in all delivery dates. The level continues to fall below the 5-year average. The absolute MMP prices reach 2,579 $/t and are below the EEX prices (2.$731/t) but above the falling Chicago quotes of $2,576/t. Clarified butter prices (around 10% share) achieved the worst result of the auction at -7.2%. The month Jun-23 affected achieved the highest price markdown at -10.7%. The median product price falls to $4,736/t, falling below the 5-year average. At -3.3% , normal butter (approx. share 8%) had to give up the price surcharges in the pre-auctions for the second time. The price cuts ranged from -1.5 to -4.3%. Negative results were particularly pronounced in the front appointments. At $4,595/t, the absolute butter price slipped below the 5-year average. EEX Leipzig is quoted at the equivalent of $5,077/t and the Chicago rates are even at $5,267/t.
