GDT auction results do not come out from the bottom quarter
The first auction of the global dairy trade in may 2016 ended with a return type-setter of the average results by - 1.4% on all products and all delivery months. Thus, a part of the price gain of the last two auctions was mined again.
The proposal to set was again less than at the last dates with about 20,600 t.
With 50% cut auction share authoritative Vollmilchpulverpreis with 0.7% still in positive territory, but in the individual months in the rear dates price concessions to-4.9 there % in the month of Oct. 16. In the 5 year full-cream milk powder is still in the bottom quarter of the price range.
The results for skimmed-milk powder show significant weaknesses in both the average score - 3.6% and the individual delivery dates. The spectrum ranges from - 1.9% in the Aug. 16-7.2% in the Oct. 16. In the 5 year MMP still ranked lowest level. Worldwide, the product is abundant in the offer. In the EU, about 120,000 t in State intervention silos store. Additional quantities will be added in the next few months.
Of the two milk fats, butterfat maintained relatively the best. The average price ended with - 1.6%. In each delivery month the bidding prices ranged from % + 1.4% in the Oct. 16-3.4 in the Jul-16. In the first auction, the product had cut off relatively well. The courses in the 2 bottom quarter move in 5-year comparison. The breakthrough in the perennial midfield has not been reached.
Normal butter fell significantly with an average score of 5.5%. In Jun.-16 still the relatively best result was achieved with - 1.7%, while in the rest of the year price discounts between - 4% and - 7.7% had to be accepted. Butter also in the 2 bottom quarter moves in the 5-year comparison.
The difference between US butter with a rate twice as high compared to the auction result of GDT remains surprisingly high. EU butter prices are still about 20% higher than the GDT courses.
Average of all products go beyond the courses from the bottom quarter of the 10-year price comparison . For the next few months the milk in the southern hemisphere will fall significantly, but the seasonal increase of summer in the northern hemisphere with a focus on the EU will more than compensate for the result.
