1st GDT auction in May 2024: + 1.8 %
The first Global Dairy Trade (GDT) auction in May 2024 confirmed the upward trend of the previous auctions with an average increase of +1.8%. The results for whole milk powder and normal butter provided significant support. The auction volume returned to the usual seasonal level of 19,231 tons.
Whole milk powder (VMP) (approx. 50% auction share) fully supported the previous upward trend with an average increase of 2.4% over the delivery months. The consistently positive results of the delivery months were topped in Aug.-24 with +5.3%. The background to this is the expected weak supply at the start of the New Zealand milk season. The VMP price level rises to 3,350 $/t, but only just reaches the 5-year average.
Skimmed milk powder (SMP) (approx. 25% share) has only slightly improved on the pre-auction level with an average of 0.4%. The absolute SMP prices reached 2,551 $/t and are above the Chicago prices of 2,507 $/t and the EEX prices in Leipzig of 2,519 $/t.
Pure butterfat prices (approx. 10% share)have once again risen by an average of +1.2%. The high surcharges from the previous auction were revised downwards again for the delivery dates Sep/Oct 2024. Demand from Asia remains stable. The relation to normal butter is leveling off again.
At +2.1 %,normal butter (approx. 8 % share) more than compensated for the price decline in the previous auction. Global market supply remains tight. At 6,593 $/t, the absolute butter price is above the 5-year average. EEX Leipzig is at the equivalent of $6,420/t and the Chicago prices are quoted at around $6,603/t.
The average auction result (index) remains above the 10-year average.
