- GDT auction in Apr. 2020 ended with average discounts of -4.2%
The second Apr. 2020 auction of the Global Dairy Trade (GDT) ended with an average result of - 4.2% . In addition to the other dairy products, the cuts in pure butter in particular contributed to the result. At 20,601 t, sales remained at the reduced level of the pre-auction. Whole milk powder (VMP) had to accept considerable discounts of -2.9 to -4.3% for the pre-auction throughout all delivery months. With an average result of $ 2,700 / t, VMP leaves the previous price orientation above the $ 3,000 / t mark. Skimmed milk powder (MMP) achieved a discount of -4.9%, a result that can only be found in the lower middle range at a price of $ 2,380 / t . The prices are even lower in Europe.Butterreinfett suffered the biggest drop in price at a discount of -7.0% . In the individual delivery months, the price reductions ranged from -5.8% to -9.6% . This means that the positive results of the pre-auctions are completely canceled. With $ 4,000 / t , only mediocrity is reached. Normal butter has with average cuts of - the surcharges of Vorauktion must give back most of 3.6%. The range is from -2.6 to -5.9%. With a price of $ 4,117 / t , the fat product falls to a multi-year average level. Prices are lower in the EU and the USA. The auction results are to be seen against the background of the market and price turmoil as a result of the COVID pandemic . The expectations had been assessed even more unfavorably in advance. In contrast to the northern hemisphere with increasing seasonal milk deliveries , production in Oceania will drop sharply in the coming months.This limits the available offer and helps to cushion prices in a crisis situation.
