- GDT auction in Mar 2022: +5.1%
The Mar 1, 2022 Global Dairy Trade (GDT) auction closed with a positive average result for the 4th straight year. Strong surcharges were again achieved for milk powder and normal butter. The available quantities continue to decrease. Whole milk powder (VMP) (more than 50% of the auction volume) has again increased significantly with a surcharge of 5.7% . The focus was on the late delivery months. China's demand dominates this sub-market. Absolute prices increase to $4,757/t and are at their highest level in the last 10 years. Skimmed milk powder (SMP) (auction share 25%) continues the price increases of the past period with +4.7% . The listings continue to climb in the high price range of the last 5 years. The Apr.22 month was in high demand. June and July deliveries performed well above average. At $4,481/t, the absolute MMP prices remain above the EEX rates ($4,138/t) and the USA ($3,836/t).At +2.1 % , butterfat prices (share 10%) were able to further advance the price improvement of the pre-auctions. The month of May. and Jul -22 date stood out with a 3.1% surcharge. The average product price rises to $7,048/t and has stabilized at a level well above the average for the price segment over the past 5 years. Normal butter (share 8%) continues the upward trend of the pre-auctions with an average of +5.9% . The May and June-22 delivery dates clearly stand out at +6.7 and 7%, respectively. The absolute butter price continues to rise at $7,086/t, hitting highs in the last 5 years. EEX Leipzig is quoted at the equivalent of $6,891/t and the Chicago rates are at $6,305/t. Scarcely available quantities of goods in connection with hamster effects as a result of the Ukraine war have a significant share in the auction results.
