- GDT Auction in Oct. 2022: -3.5%
The first October 2022 auction of the Global Dairy Trade (GDT) caused a price drop of -3.5% on average after a brief surge in the two previous auctions. Plain butter and whole milk powder delivered the decisive downward swings. The increased auction volume of around 31,000 t, which is quite usual for the season, also contributed to the result. Whole milk powder (VMP) (approx. 50% auction share) lost all of the price increases of the pre-auction with an average of -4%. The course setbacks took place on all delivery dates. The sufficient supply and restrained demand from China slowed down the course of the auction. Absolute prices fall to $3,573/t but still remain within the multi-year average. Skimmed milk powder (SMP) (25% share) once again had to make price concessions at -1.6%. However, the price declines for the spring dates are more moderate. Nevertheless, a level above the 5-year average is maintained.Absolute MMP prices reach $3,497/t, below EEX rates ($3,725/t) but above Chicago listings ($3,406/t). At -1.7 %, butterfat prices (10% share) lost some of the increases in the two pre-auctions (together +18%). In this case, too, the late delivery dates did not fare so badly. The median product price falls to $5,811/t, hovering just above the 5 year average. Normal butter (share 8%) had to make significant cuts with a setback of -7%. The November date is an exception. However, the result remains in the upper midfield of the last 5 years. The absolute butter price falls to $5,983/t. EEX Leipzig is quoted at the equivalent of $7,208/t and the Chicago rates are at $6,505/t. In a 10-year comparison, the price level for dairy products remains in the upper price range. The limited supply quantities due to costs keep the price level high
