1st GDT auction prices in July 2024: -6.9%, increase in turnover +45%
The first Global Dairy Trade (GDT) auction in July 2024 saw a significant setback in the previously stable and friendly price trend with an average of -6.9%. In addition to milk powder, particularly weak results in the butter sector contributed significantly to this. The auction volume rose sharply by +45% to 24,138 tons.
Whole milk powder (VMP) (approx. 50% auction share) once again broke the upward trend of the previous auctions with an average of -4.3% for the delivery months. The results were clearly negative in all delivery months apart from Aug. The main reason for this is China's restrained demand. In the coming months, the usual increase in supply is expected with the start of the new New Zealand milk season, another reason for the restraint in bid prices. The VMP price level falls to the equivalent of € 3,995/t.
Skimmed milk powder (SMP) (approx. 25% share) has followed the VMP prices with an average of -6.1%. The influencing factors are of a similar nature. In particular, the last dates have fallen at an above-average rate. The absolute SMP prices reached the equivalent of 2,407 €/t and are above the Chicago prices of 2,411 €/t and the EEX prices in Leipzig of 2,502 €/t.
Pure butterfat prices (approx. 10% share)have fallen considerably by -10.7% on average. With the exception of Aug.24, the negative results were in double figures in all delivery months. The product is particularly important in Asia.
At -10.2%,normal butter (approx. 8% share) compensated for a considerable part of the surcharges in the pre-auction. At €6,092/t, the peak level achieved could not be maintained. EEX Leipzig converted at 6,590 €/t and the Chicago prices are quoted at 6,314 €/t.
The average auction result (index) remains above the 10-year average.
