- GDT auction in September 2023: +4.6%
The second September 2023 auction of Global Dairy Trade (GDT) continued the price increase in the previous auction with an average of +4.6%. The big winners were skimmed milk powder and concentrated butter. The increasing demand from China has been clearly noticeable. At 37,366 t, the auction volume remains at the usual high level for the season. New Zealand production peaks only in October. Whole milk powder (VMP) (around 50% auction share) continued its upward trend with an average of +4.6%. There was still some catching up to do compared to previous price reductions. Compared to the MMP price, VMP is relatively cheaper. The VMP price level is below the 5-year average at $2,799/t. As usual, China was the largest buyer. Skimmed milk powder (SMP) (around 25%) has improved significantly on average by +5.4% after the discounts in the preliminary auctions. China's influence is also effective here. The result almost reaches the 5-year average. The absolute MMP prices reach 2.400 $/t and remain below the EEX prices ($2,4597/t) and the Chicago quotes of 2,471 $/t. Butter fat prices (around 10%) have recovered significantly again at +5.3%. The delivery dates ahead are particularly strong. The surcharges in the first months of the new year also raise hopes. After the setbacks in the preliminary auctions, normal butter (around 8%) has once again stabilized upwards at an average of +3.8%. At $4,723/t, the absolute butter price is still just within the 5-year average. EEX Leipzig is trading at the equivalent of $4,965/t and Chicago prices have risen sharply to $5,881/t. The average auction result remains below the 10-year average.
