- GDT Auction in Aug. 2022: - 5.0%
The first Global Dairy Trade (GDT) Aug 2022 auction once again reduced prices for all dairy products. Whole milk powder and normal butter had to accept the biggest price setbacks. The auction volumes increase seasonally. Whole milk powder (VMP) (approx. 50% auction share) fell significantly by more than -6%. The price losses are distributed over the entire delivery dates. Absolute prices fall to $3,544/t but are still within the good multi-year average. China's weak demand played a major role. Skimmed milk powder (SMP) (25% share) continued to lose value at -5.3%. The prices have slipped into the average range of the last 5 years. The absolute MMP prices reach $3,524/t and are below the EEX prices ($3,551/t) and the Chicago quotations ($3,700/t). Butterfat prices (share 10%) experienced comparatively moderate price reductions.Price reductions averaged -1.4%. The median product price falls to $5,518/t, only just staying in the upper range of the last 5 years. At -6.1%, normal butter (share 8%) suffered another strong setback. Prices are now only in the upper midfield. Prices have been consistently lowered in all delivery months. The absolute butter price falls to $5,194/t. EEX Leipzig is quoted at the equivalent of $7,050/t and the Chicago prices are falling at $6,338/t. The global weakness of the world economy reduces purchasing power and demand. China plays a crucial role in the milk sector.
