GDT auction by the 18th Aug. 15: + 14.8% increase over the prior auction - descent ends?
The average prices for milk products are in the recent global dairy trade auction of the 18th Aug-2015 after several months the average auction results plummeting under the dreaded level by the year 2009 to + increased by 14.8%. The result is all the more remarkable as sales volume goes beyond with nearly 37,000 t significantly above the average of the previous auctions, however has not quite achieved the high amounts of the preliminary auction. A supply reduction of approximately 20% has filed more than offset the price slip of two past auctions. Thus, the level of 2009 is no longer exceeded.
The demand presents itself after milk products again in a rising trend, although the level still far from multi-year averages is located.
Butterfat scored the best result (6% auction share) with an average increase of + 26.6%, especially on the nearby delivery dates Oct. 15 until Dec. 15 is due during the remaining months until Feb 2016 supplement double-digit plight.
Normal butter with 84% fat content daily with an average surcharge of rd. + 11% the reduction in the last auction off. In particular the front dates were much in demand.
Whole milk powder but denies the largest portion with about two-thirds of auction volume. The average price rose by about 19%, with a range of + 26.4 In the Nov. 15-14.1% during the delivery month Jan. 16.
Skimmed-milk powder an average price increase of + 8.5%, reached % % however in a very wide span of 9.9 in the Sep.-15 to + 12.3 in the Nov. 15. Significantly weaker cut supplies in the new year 2016 the upcoming auctions are increasingly rising seasonal delivery quantities in New Zealand and Australia, while increasingly diminish in the northern hemisphere the milk deliveries late in the lactation period. The low payout (in New Zealand under €20-ct / kg) and the weather conditions impaired feed basis will be effective as the brake factors. The El Niño-weather phenomenon could be a source of droughts in Australia and New Zealand.
For a fundamental trend reversal of in milk prices the demand especially from China must increase significantly. Given the economic difficulties in the Kingdom of the middle and the multiple devaluation of the Chinese currency will need to Park even a prolonged period of patience.
