GDT Auction of Oct. 15 Good Claims - MMP prices continue to rise The first Nov. 2019 Global Dairy Trade (GDT) auction has made a strong leap with an average of + 3.7%. At 38.681 t, sales remain at a high level. Obviously, there is enough demand. In particular, the two milk powder ranges attract attention. Whole milk powder (VMP) was able to break through the previous phase of stagnation with an average of + 3.6% on average in all delivery months. Except for the Dec. 19 date, the results reach rates of increase of between + 3.6% and + 5.2% in the first 4 months of the new year. Obviously, an increase in demand can be assumed. After the steady increases in the pre-auctions, skimmed milk powder (MMP) gets a hefty extra charge with a result of +6.7% . Thus, the MMP quotes finally leave the midfield area. The long period of low prices seems to have been overcome. Significantly high surcharges were achieved in the months Mar. and Apr.-20 with +6.3 % and+ 8.0%. MMP again becomes a mainstay of the milk price. Butterfat has continued to grow at an average of + 2.6% . In addition, the Mar. -20-date has contributed significantly with +4.5%. Compared to the 5-year average, the courses are again upper midfield. Also from this use side the milk prices are noticeably supported. Normal butter got with -0.4% on average for the 3rd time a damper. The individual months move below and above the zero line for pre-auction. But the Mar.-20-date stands out with +1.0% slightly upwards. Nevertheless, the butter prices are still in good midfield. The current auction results indicate an improvement in the price trend. Despite seasonal supply highs in New Zealand, the available quantity is limited enough to meet demand. Striking are the significant mark-ups for the first delivery months of the new year. The Mar.-20 date stands out in all product areas.In the USA, the butter prices remain at a stable average exchange rate due to the deficit situation there. There is currently little movement in trading and forward rates on EEX-Leibzig. However, an improved international sales business could lead to a revival.
