- GDT Auction in Jul 2023: -3.3%
The first Global Dairy Trade (GDT) July 2023 auction halted a potential upside at an average of -3.3%. The big loser this time was normal butter and in 2nd place skimmed milk powder with clear setbacks. The auction volume of around 24,837 t has risen again to the usual level for the season. Whole milk powder (VMP) (approx. 50% auction share) was not quite able to maintain the reduced level of the pre-auction. Only the delivery month Aug.-23 stood out with a clear +6.9% upwards. The expected price improvements in the autumn months were repeatedly not confirmed. The weakening of the economy of the largest buyer China could be the reason. The VMP price level is $3,149/t. Skimmed milk powder (SMP) (approx. 25% share) had to accept considerable reductions at -6.0% compared to the pre-auction. The delivery month Auf was not asked at all. In the remaining delivery months, significant price reductions had to be accepted again. The result remains below the 5-year average. The absolute MMP prices reach 2.$525/t and are above the EEX rates ($2,646/t) and the Chicago listings of $2,574/t. At -3.4%, butterfat prices (about 10%) more than smoothed out the upward trend of the pre-auctions. Only the month of Aug-23 brought a positive result. All later delivery dates performed significantly worse at -3.3 to -5.5%. With an average of -10.3% , normal butter (around 8%) more than compensated for the unusual price premiums of the pre-auction. In particular, the autumn months were out of the ordinary with double-digit discounts. At $5,379/t, the absolute butter price is back below the 5-year average. EEX Leipzig is quoted at the equivalent of $4,842/t and the Chicago rates are even at $5,368/t. The average auction result is approaching the 10-year average again.
