- GDT Auction in Mar 2023: -0.7%
The first Global Dairy Trade (GDT) Mar 2023 auction closed at an average of -0.7%. Except for VMP, all average 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 26,747 t was comparatively small. Whole milk powder (VMP) (approx. 50% auction share) was just able to maintain the price level achieved at +0.2% after the price increase of the pre-auction. The first few months of delivery achieved surcharges, a result that reflects the Chinese willingness to buy. Absolute prices rise to $3,277/t but remain in the multi-year average. Skimmed milk powder (SMP) (about 25% share) continued the downward trend with an average of -1.1%. Price reductions of between -0.1 and -1.9% can be observed on all delivery dates. The level falls below the 5-year mean. Absolute MMP prices reach $2,739/t, below EEX prices ($2,766/t) but above Chicago listings ($2,623/t).At -1.6% , butterfat prices (approx. 10% share) have now had to completely give up the premiums of the pre-pre-auction. Price cuts were made in all delivery months. The median product price falls to $5,340/t but is still within the 5-year average. At -0.3% , normal butter (approx. 8% share) was not quite able to keep up with the price premiums in the pre-auctions. Price increases ranged from +3.4% Negative results in the forward dates were offset by above-average premiums in Jul and Aug 2023. That was also the case at the pre-auction. At $4,899/t, the absolute butter price remains in the 5-year midfield. EEX Leipzig is quoted at the equivalent of $5,217/t and the Chicago rates are even at $5,181/t. The average auction result is within the 10-year average.
