2nd GDT auction prices in Dec. 2024: -2.8%
The second Global Dairy Trade (GDT) auction in Dec. 2024 saw an average price drop of -2.8%, reversing the price increases of the previous auctions for the coming delivery months to a considerable extent. With the exception of normal butter, some significant price reductions were made. Auction volumes continue to fall for seasonal reasons.
At -2.9%,whole milk powder (VMP) (around 50% of the auction volume) was unable to maintain the higher price level of the previous auctions. The price reductions took place in all delivery months of the new year 2025. As always, the dominant influence of the largest buyer, China, was decisive. The VMP price level is 3,706 €/t.
Skimmed milk powder (SMP) (approx. 25% share) has continued the downward trend of the previous auction with a current -2.9%. The discounts affect all upcoming delivery dates with a focus on the early months. However, at the equivalent of € 2,626 per tonne, absolute SMP prices are still close to the average of previous years. The Chicago prices are at €2,918/t and the EEX prices in Leipzig are at €2,635/t.
Pure butterfat prices (approx. 10% share)achieved the worst result of the auction with an average of -3.8%. The Feb. 25 date (-6.6%) in particular caused the average result to fall sharply.
Normal butter (approx. 8% share) showed a calmer development with -0.6% after the strong ups and downs of the previous auctions. Although the result remains in the high price range, the potential for growth appears to have been exhausted. Prices fell to 6,317 €/t. EEX Leipzig is quoted at 7,628 €/t and the Chicago prices are around 5,400 €/t for the Dec. 24 date.
The average auction result (index) remains above the 10-year average.
