- GDT Auction in Mar 2022: -0.9%
The March 2, 2022 Global Dairy Trade (GDT) auction was stopped for the first time after the previous continuous increases since the beginning of the year. A significant surcharge was only achieved for milk powder. The trading volumes decrease seasonally. Whole milk powder (VMP) (more than 50% of the auction volume) had to give up almost half of the price increase in the pre-auction. The price declines took place in all delivery months. China's income-related weaker demand is affecting this sub-market to a large extent. Absolute prices decrease to $4,596/t but remain at 10-year highs. Skimmed milk powder (SMP) (auction share 25%) continues the recent price increases of +1.6% , but to a lesser extent. The listings continue to climb in the high price range of the last 5 years. The May and Aug22 months were in high demand. At $4,545/t, the absolute MMP prices remain above the EEX prices (4.$138/t) and the USA ($3,836/t). The pre-auction results held up for butterfat prices (10% share) with an average of +0.4% . The month of June -22 stood out with a 1.7% premium, there was a need to catch up. The average product price rises to $7,111/t and has stabilized at a level well above the average for the price segment over the past 5 years. Normal butter (share 8%) has to give up a considerable part of the surcharges in the pre-auction. The front dates have dropped sharply with - 2.5% . Only the month of Aug.22 delivered a significant premium. The absolute butter price falls back below the 7,000 mark to $6,958/t, but still remains in the high price range of the last 5 years. EEX Leipzig is quoted at the equivalent of $6,891/t and the Chicago rates are at $6,305/t. The upward trend in international prices for dairy products that has been in place since the beginning of the year has reached a temporary peak.The courses are at a high price level of the last 10 years.
