1st GDT auction prices in Aug 2024: +0.5 %
The first Global Dairy Trade (GDT) auction in Aug. 2024 confirmed the slight upward trend of the previous auction with an average increase of +0.5 %. The main pillars of the result are the higher whole milk powder and clarified butter prices. The high auction volume of 35,965 tons is outstanding. The record is 40,673 tons.
At +2.4%,whole milk powder (VMP) (approx. 50% auction share) halted the downward trend observed to date. China, as the largest buyer, obviously had some catching up to do. The New Zealand milk season, which starts in a few weeks, offers the prospect of continued high supply. The VMP price level rose to the equivalent of € 2,972 per tonne.
Skimmed milk powder (SMP) (approx. 25% share) was unable to keep pace with VMP prices, falling by an average of -2.7%. The Oct./Nov.-24 delivery dates in particular saw above-average declines. The absolute SMP prices reached the equivalent of 2,315 €/t and were below the Chicago prices of 2,488 €/t and the EEX prices in Leipzig of 2,428 €/t.
Pure butterfat prices (approx. 10% share)rose again by an average of +1.2% and continued the upward trend of the previous auction. There were particularly strong increases in the front and back dates. There was a need for correction here.
Normal butter (approx. 8 % share) lost the price increase of the previous auction with -2.4 %. Prices fell to €5,917/t, but are still at a medium-term peak price level. EEX Leipzig is quoted at 7,113 €/t and Chicago prices are around 6,889 €/t.
The average auction result (index) remains just above the 10-year average.
