- GDT Auction in Mar 2023: -2.6%
The second Global Dairy Trade (GDT) Mar 2023 auction closed at an average of -2.6%. The average results of all products were negative. In a long-term comparison, the GDT index has slipped back to the 10-year average. The auction volume of around 26,795 t was just as small as in the previous auction. Whole milk powder (VMP) (approx. 50% auction share) still had to accept the lowest price drop at -1.5%. Only the delivery month Aug 2023 achieved a small surcharge. However, since the beginning of the year, the VMP price level has remained in the region of $3,230/t. A more or less constant demand from China forms the basis for a comparatively firm price development. Skimmed milk powder (SMP) (about 25% share) has continued the downward trend since April 2022 with an average of -3.5%. The price reductions of between -3.1 and -4.6% can be observed in all delivery dates. The level continues to fall below the 5-year average. The absolute MMP prices reach 2.$648/t and are below the EEX rates ($2,731/t) but above the falling Chicago listings of $2,576/t. Butterfat prices (about 10% share) have now had to accept further price reductions of -3.8%. All delivery dates are affected. The median product price falls to $5,150/t, falling below the 5-year average. Normal butter (approx. 8% share) had to give up the price premiums in the pre-auctions again at -3.0%. Price cuts ranged from -2.0% to -3.6%. Negative results were particularly pronounced in the front appointments. At $4,748/t, the absolute butter price slipped below the 5-year average. EEX Leipzig is quoted at the equivalent of $5,077/t and the Chicago rates are even at $5,267/t. The average auction result is within the 10-year average.
