- GDT Auction in Feb 2023: -1.5%
The second Feb. 2023 auction of the Global Dairy Trade (GDT) ended after a brief recovery in the pre-auction with an average of -1.5%. Except for normal butter, all results were in the negative range. In a long-term comparison, the GDT index has slipped back to the 10-year average. The auction volume of around 30,693 t was repeatedly large. Whole milk powder (VMP) (approx. 50% auction share) suffered losses again after the price increase in the pre-auction. The discounts ranged from 1.5 to 2.8%; An average of -2.0% was achieved. Demand remained subdued. Absolute prices fall to $3,264/t but remain in the multi-year average. Skimmed milk powder (SMP) (about 25% share) continued the downward trend with an average of -2.4%. The price reductions of between 1.8 and -3.3% can be observed on all delivery dates. The level falls towards the 5-year average. The absolute MMP prices reach $2,769/t and are above the EEX rates ($2,664/t) and the Chicago listings (2.$700/t). At -2.6% , butterfat prices (about 10%) had to give up more than half of the premiums of the pre-auction. The discounts on the earlier dates were significantly larger than the later delivery months, a balance to the pre-auction. The average product price falls to $5,447/t, but is still within the good 5-year average. Normal butter (approx. 8% share) once again received the highest price premiums at +3.8%. The price increases ranged from +3.4% in the first delivery month to +4.9% in the last delivery month. At $4,922/t, the absolute butter price is moving up again from the 5-year midfield. EEX Leipzig is quoted at the equivalent of $4,877/t and the Chicago rates are even at $5,368/t. The average auction result is within the 10-year average.
