GDT auction Jan 21, 2020: + 1.7% with ups and downs The second Jan 2020 auction of the Global Dairy Trade (GDT) achieved a positive result on average, but the results for the individual products were quite different. Butterreinfett had to give back the surcharges it had recently reached. Skimmed milk powder also suffered losses. The repeated price increases for normal butter are encouraging. At 33,165 t, sales remained at the reduced level of the pre-auction. Whole milk powder (VMP) has been able to continue to increase in all delivery months with consistently positive surcharges. Since China is the main buyer, it can be assumed that demand from this country will pick up again. Protein replacement for missing pork may also play a role. Skimmed milk powder (MMP) had to give up a considerable part of its profits in the last auction. Nevertheless, the MMP quotes remain above the multi-year average. The long phase of low prices has been overcome.The stable VMP results certainly provided support. Butterfat has all the bonuses in the Vorauktion have to give back. Compared to the 5-year average, however, the courses remain in the upper midfield. Normal butter achieved the best result in this auction with +5.5% . High premiums were achieved again and again in all delivery months. This means that butter prices have continued to rise to the upper middle of the past 5 years. The current auction results confirm a fundamental positive price trend in the New Year. With the exception of the EU and the USA, the production developments of the exporting milk-producing countries mostly point downwards. Australia is leading the way with its drought and wildfires. New Zealand cannot maintain its production level either.
