1st GDT auction in June 2024: + 1.7 %
The first June 2024 Global Dairy Trade (GDT) auction continued the upward trend of the previous auctions with an average increase of +1.7 %. Significant support came from the forward delivery dates. The auction volume fell to an unusually low 17,637 tons.
Whole milk powder (VMP) (approx. 50% auction share) continued its upward trend with +1.7% on average over the delivery months. The front delivery months were decisive, while the fall months had to accept reductions. Future supply from New Zealand will be significantly lower due to lower cow numbers and a shift in production to butter and cheese. The VMP price level rises to €3,478/t and thus exceeds the 5-year average.
Skimmed milk powder (SMP) (approx. 25% share) further improved on the pre-auction level with an average increase of +3.0%. The absolute SMP prices reached 2,722 €/t and were above the Chicago prices of 2,418 €/t and the EEX prices in Leipzig of 2,425 €/t.
Pure butterfat prices (approx. 10% share)have risen again slightly by +0.9% on average. The early delivery dates achieved premiums, while the fall months had to accept discounts from the high increases of the pre-auction.
Normal butter (approx. 8% share) remained at the peak price level of 2022 with +1.7%. Unusually high price premiums for July and August were offset by significant price reductions in Nov./Dec. This resulted in a correction to the previous auction. At €6,864/t, the absolute butter price is above the 5-year average. The EEX Leipzig converted price is 6,563 €/t and the Chicago prices are quoted at 6,390 €/t.
The average auction result (index) remains above the 10-year average.
