GDT auction 04.Feb . 2020 : - 4.7% price increase of the Jan auctions reset again. The first Feb. 2020 auction of the Global Dairy Trade (GDT) canceled the price upswing from the first two Jan.2020 auctions. In particular, the two milk powder products and pure butter have contributed significantly to the poor result. Only normal butter could hold its own. At 29,006 t or -20%, sales fell short of the average of previous auctions. Whole milk powder (VMP) had to surrender its surcharges from the pre-auctions. Since China is the main buyer, it can be assumed that demand from this country will decline. The background is the coronavirus epidemic, which is contributing to declining economic strength, falling incomes and falling consumption. Skimmed milk powder (MMP) suffered a significant drop in prices, particularly in the later months of delivery. There was still some catching up to do for the March 2020 delivery. Nevertheless, the MMP quotes remain above the multi-year average.In this case, too, the declining demand in China may have played a role. Despite the current price setbacks, the price level is still above average. Butterfett has suffered price reductions again and again. The background is the weak demand in the Asian countries. The courses can no longer hold their own in the upper midfield. In contrast, normal butter was able to defend the previously increased price level with + 0.2% . The quotations fluctuate in the individual delivery months by - + 1% compared to the pre-auction. This means that the butter prices have remained in the upper middle of the last 5 years. The current auction results are primarily a consequence of the weak demand due to the coronavirus epidemic in China. The uncertainties about the further course and the subsequent effects lead to careful buying behavior. In contrast, the development of offers is not urgent and will rather decline. This is shown by the seasonal milk deliveries in the most important production areas.
