- GDT auction in February 2024: +4.2%
The first February 2024 auction of Global Dairy Trade (GDT) continued the price increase of the previous auctions with an average of +4.2%. Regular butter with above-average markups makes a significant contribution to this. At 24,836 t, the auction volume continues to decline as is usual for the season. The background is a global decline in milk deliveries in the largest producing and exporting countries. Whole milk powder (VMP) (around 50% auction share) continues the price increase from the previous auctions with an average of +3.4%. Surcharges were implemented for all delivery months, with the focus being on the front months. China remains the main buyer. The VMP price level of $3,463/t is a good 5-year average. Skimmed milk powder (SMP) (around 25%) continued the positive result of the preliminary auction with +4.6%. In this case too, the front delivery months stand out at the top. The result does not yet reach the 5-year average. Absolute MMP prices reach $2,758/t, rising above Chicago quotes of 2.742 $/t and well above the EEX prices ($2,690/t). Butter fat prices (around 10%) have increased again at +3.3%. With the exception of April 24, similarly high surcharges of less than 3% were achieved on the other dates. After previous multiple increases, normal butter (around 8%) has once again made a far above-average price jump with an average of +10.3%. Compared to the competition in the USA, there was a need to catch up. At $6,516/t, the absolute butter price is above the 5-year average. EEX Leipzig is equivalent to $5,940/t and Chicago prices are around $6,516/t. The average auction result remains above the 10-year average.
