GDT internet auction from Sept. 17, 2013
The bi-weekly GDT auction on Sept. 17, 2013 achieved a slight increase of 0.3% compared to the auction on Sept. 3, 2013. The price level thus remains in the upper price segment of recent years since the peak year of 2007. The total supply this time remained significantly below the auction at the beginning of Sept.13.
Individual results: Butter pure fat prices fell by -3.3% on average over the delivery months to March 2014. In the same period, buyers invested +5.2% more in normal butter. There were two particular highlights: deliveries in Nov-13 and Jan-14, each with an increase of over 6 % compared to the pre-auction 14 days ago. It is worth noting that the butter price increase was achieved despite an increase in supply of around 18%.
Skimmed milk powder fell slightly by -1.7% with a 4% reduction in supply. Whole milk powder was offered in short supply at -18% and achieved an average price increase of +1.1%.
With the exception of butter, there were only minor differences in the average hammer prices between the individual delivery months. The stable results indicate a firm price trend until late spring 2014.
The GDT auctions have been running since 2008 and the most recent auction was the 100th in a row. In the beginning, between 100,000 and 200,000 tons were auctioned annually; today, sales volumes range between 900,000 and 1 million tons of dairy products per year. The typical supply trend for the southern hemisphere over the course of a year sees a low point in the summer months from May to July, a seasonal peak in the fall months of September to November and a downward curve from the turn of the year.
Up to 850 buyers from over 90 countries around the world now take part in the auctions. The number of dairy companies bidding has now increased to 6 (Amul, Arla, Dairy America, euroserum, Fonterra, Murray Goulburn). The foundation stone was laid by FONTERRA in New Zealand.
