GDT auction for the repeated times in plus

GDT auction of Jan. 15, 2019: price increase of approx. 11%

The second Global Dairy Trade Auction (GDT) in the New Year 2019 continues the price increase from the two dates in December of the previous year with + 4.2%. As a result, average prices since the beginning of Dec.-18 have risen by approx. 11% increase. Repeatedly low transshipment volumes of just under 28,000 tonnes, significantly lower international increases in milk deliveries and the sell-off of EU MMP intervention warehouses are contributing significantly to the current trend.

In detail:

Whole milk powder prices showed a notable increase of only + 3.0% on average. In the delivery months, the surcharges for the pre-auction were between +2 and + 4.1%. Indirect impetus comes from the above-average increase in MMP prices.

Skimmed milk powder prices averaged 10.3%. The EU state intervention stores are mined except for residual quantities. For fresh goods you have to invest more, if you want to come to the course. Throughout the delivery months up to and including May surcharges of more than + 10% were granted. The breakthrough to multi-year average prices seems to have succeeded.

Clarified butter rose again sharply at + 3.2% .Even in this case, the hammer prices almost consistently reached positive results over just delivery dates. Noteworthy is the finding that the rear dates were also rated well in average in anticipation of summery high milk deliveries in the northern hemisphere.

Normal butter achieved strong price increases with an average of + 4.6% , which rose significantly in the other months with the exception of the Febr.-19 date with + 4.9% . The price decline seen in earlier months seems to be finally stopped for the time being.

Recent auction results reflect weaker milk production in major production areas. The price-cutting inventories were significantly reduced; Demand remains extremely stable. The milk price is now being carried upwards by rising butter fats and milk powder. The braking factor skimmed milk powder falls away.

Term rates on EEX Leibzig (as of Jan. 15, 2019)