2nd GDT auction in June 2024: -0.5 %
The second Global Dairy Trade (GDT) auction in June 2024 interrupted the upward trend of the previous auctions with an average of -0.5%. Weak results in the milk powder sector could not be offset by above-average increases in normal butter. The auction volume fell to an unusually low 16,787 tons.
Whole milk powder (VMP) (approx. 50% auction share) interrupted the previous upward trend with an average of -2.5% for the delivery months. The results were negative in all delivery months. The decisive factor is China's restrained demand. Future supply from New Zealand will be significantly lower due to lower cow numbers and a shift in production to butter and cheese. The VMP price level will fall to the equivalent of € 3,421/t.
Skimmed milk powder (SMP) (approx. 25% share) has slightly improved on the pre-auction level with an average of +0.7%. The absolute SMP prices reached the equivalent of € 2,788/t and were above the Chicago prices of € 2,411/t and the EEX prices in Leipzig of € 2,502/t.
Pure butterfat prices (approx. 10% share)have fallen again by -1.2% on average. Negative results were achieved in almost all delivery dates. A certain parallelism to the VMP prices can be observed.
Normal butter (approx. 8% share) delivered the best result at +6.2%. Repeatedly high price premiums were achieved for July delivery. The considerable price reductions in Nov/Dec of the pre-auction were more than offset this time. At 7,377 €/t, the absolute butter price exceeded the previous peak level of 2022. EEX Leipzig is equivalent to 6,590 €/t and the Chicago prices are quoted at 6,314 €/t.
The average auction result (index) remains above the 10-year average.
