GDT auction results of 18 June 2019 fall again by -3.8% - Butter prices are melting The 2 nd June auction of the Global Dairy Trade is delivering negative results for the third time in a row. This time it is -3.8% less for pre-auction. At first glance, the increased sales of 24,239 t are striking. Compared to the months before April and May are the handling volumes by approx. 50% up. In the case of the individual products and delivery months, there is a noticeable weakness as well as outstanding differences. Whole milk powder (VMP) showed a very poor performance of -4.3% on average in all delivery months . The individual delivery dates fall continuously from -4.7% to -3.3% in the further course of the year. China, as the largest importer, seems to be holding back imports. Skimmed milk powder (MMP) has fallen back on the falling branch after the previous price increases.The average price decline of -3.5% is mainly attributable to the weak month of July-19 at -5.0%. In anticipation of rising milk deliveries in the fall months in New Zealand, buyers have held back. The EU intervention price level is still not falling below. Butterfat averaged -3.3% on average for the second. The sharpest drop in prices of -4.8% was the Aug. 19 date. The butter prices can not keep up the high level. Normal butter cut with -5.7% in the average of all delivery months were the worst. In particular, the first two months of July and Aug, 2019 brought price reductions of -10% and -7.2%. However, after the strong deductions in the pre-auction, the months of delivery remained comparatively moderate. The auction results show the usual seasonal price low in the summer period. Increased handling volumes are only absorbed by the market at lower price conditions. Demand is limited. The expectation of the rising milk deliveries of New Zealand in Ok.-19 let buyers cautiously.Dairy products are expected to be sufficiently available, although there are indications that milk deliveries tend to decline in some export-oriented production areas. The problem is more on the demand side.
