2nd GDT auction prices in Oct. 2024: -0.3 %
The second Global Dairy Trade (GDT) auction in Oct. 2024 interrupted the price increases of the previous auctions with an average of -0.3 %. Only pure butterfat saw slight price increases. The repeated high auction volume of 38,956 tons is outstanding. The record is 40,673 tons.
Whole milk powder (VMP) (approx. 50% auction share) maintained the previous result after the increase in the previous auction. The price level appears to have reached an upper limit for buyers. The New Zealand milk season usually reaches its annual peak in October. The VMP price level remains at the equivalent of €3,255/t.
Skimmed milk powder (SMP) (approx. 25% share) continues the downward price corrections in all delivery months with -1.8%. At the equivalent of € 2,515/t, however, absolute SMP prices are still close to the mid-range. The Chicago prices are at €2,715/t and the EEX prices in Leipzig are at €2,575/t.
Pure butterfat prices (approx. 10% share)only slightly improved on the pre-auction result with an average of +0.3 The month of Dec. 2024 contributed significantly to the average value with +1.4 %. For the first few months of the new year, the results remain just in positive territory, as in the previous auction.
Normal butter (approx. 8% share) has once again had to accept price declines of -0.3%. Nevertheless, the price trend remains at a high level. Prices fell to €5,951 per tonne, which is still comparatively high by Asian standards. EEX Leipzig is quoted at 7,710 €/t and the Chicago prices are around 5,562 €/t for the Oct. 24 date.
The average auction result (index) remains above the 10-year average.
In the first half of 2024, milk deliveries in major production regions remained below the previous year's level on average, with varying developments in the individual countries. Starting in August 2024, there was a slight recovery as a result of rising milk production in New Zealand and Australia. In contrast, the downward trend in the EU intensifies.
