- GDT auction in December 2023: +1.6%%
The first December 2023 auction of Global Dairy Trade (GDT) set a positive tone with an average of +1.6%. There were price increases for the majority of delivery dates, but particularly in the milk powder sector. China demand was once again the deciding factor. The auction volume fell noticeably at 29,559 t. This involves both declining supply and demand. Whole milk powder (VMP) (around 50% auction share) continued the upswing from the pre-auction with an average of +2.1%. In preparation for the New Year, demand from China has picked up again somewhat. At $3,104/t, the VMP price level is just within the 5-year average. Skimmed milk powder (SMP) (around 25%) has made up part of the price reduction in the pre-auction at +1.2%. Surcharges prevailed in all delivery months. The result has not yet reached the 5-year average again. The absolute MMP prices reach $2,671/t, but remain below the EEX prices ($2,749/t) and above the Chicago quotes of $2,623/t.Butter fat prices (around 10%) have just maintained their position at +0.0%. The decisive factor was the delivery month of December 23 with -6.8% compared to the pre-auction. The dates in the first half of 2024 show predominantly positive price developments. Normal butter (around 8%) made up for the decline in the previous auction with 0.7%. . At $4,936/t, the absolute butter price is at the 5-year average. EEX Leipzig is trading at the equivalent of $5,457/t and Chicago prices have fallen back to $5,710/t. The average auction result once again exceeds the 10-year average.
