- GDT auction in December 2023: +2.3%
The second December 2023 auction of Global Dairy Trade (GDT) saw a further price increase with an average of +2.3%. Regular butter with above-average markups makes a significant contribution to this. At 27,379 t, the auction volume continues to decline noticeably due to the season. Whole milk powder (VMP) (around 50% auction share) continues the price increase from the previous auction with an average of +2.9%. The first three months of the new year in particular achieved considerable surcharges. China, as the main buyer, has some catching up to do to secure its inventories. The VMP price level is at the 5-year average of $3,207/t. Skimmed milk powder (SMP) (around 25%) offset the positive result of the previous auction with -1.2%. The early dates in particular tend to be weak. The result remains below the 5-year average. The absolute MMP prices reach $2,620/t, but remain below the EEX prices ($2,875/t) and just under the Chicago quotes of $2,643/t.Butter fat prices (around 10%) have just maintained their position at +0.2%. The delivery month Jan.-24 was unfavorable with -1.5% compared to the pre-auction, while the subsequent delivery dates remained in positive territory. The dates in the first half of 2024 show predominantly positive price developments. Normal butter (around 8%) has made a jump above average at +9.9%. Compared to the competition in the USA and the EU, there was a need for adjustment. At $5,458/t, the absolute butter price is above the 5-year average. EEX Leipzig is trading at the equivalent of $5,525/t and Chicago prices are trading at $5,541/t.
