- GDT auction in February 2022: +4.2% again
The Feb. 2, 2022 Global Dairy Trade (GDT) auction closed with a repeat positive average result of +4.2%. Strong surcharges were again achieved for skimmed milk powder and normal butter. The available quantities have fallen significantly. Whole milk powder (VMP) with more than half of the auction volumes has again increased significantly with +4.2% surcharge. Higher prices were approved for all delivery dates. China's demand dominates this sub-market. Absolute prices increase to $4,354/t and are at their highest level in the last 10 years. Skimmed milk powder (SMP) (auction share 25%) continues the price increases of recent times with a significantly increased 6%. The listings continue to climb in the high price range of the last 5 years. This time the front delivery dates were in high demand. At $4,295/t, the absolute MMP prices remain above the EEX rates ($3,672/t) and the USA ($3,477/t).Butterfat prices (share 10%) were able to further improve the price improvement of the pre-auction with +1.2% . The month March-22 date was able to increase considerably with a 3.1% surcharge. The average product price increases to $6,889/t and has stabilized at a comparatively high level in the price segment of the last 5 years. Normal butter (share 8%) continues the upward trend of the pre-auctions with an average of +5.1% . All delivery dates remained in the clear positive range. The absolute butter price continues to rise at $6,686/t, hitting highs in the last 5 years. EEX Leipzig is quoted at the equivalent of $6,359/t and the Chicago rates are at $4,520/t. 10 Year Price Index of GDT Auctions The upward trend in international prices for dairy products since Aug.-21 continues. The tightly available supply quantities lead to continued price increases. The 10-year price index of the GDT auctions is in the top price range.The milk supply in the world's largest export region for dairy products, New Zealand , has long passed its peak. In the coming months, production will decrease continuously with decreasing grazing performance. Potential buyers of New Zealand goods must be prepared for a shortage of supplies.
