2nd GDT auction prices in Aug 2024: +5.5 %
The second Global Dairy Trade (GDT) auction in Aug. 2024 significantly strengthened the upward trend of the previous auction with an average increase of +5.5 %. The main pillars of the result are the higher whole milk powder and clarified butter prices. The repeated high auction volume of 34,916 tons is outstanding. The record is 40,673 tons.
At +7.2%,whole milk powder (VMP) (approx. 50% auction share) reinforced the upward trend of the previous auction with a focus on the first two delivery months. Increased demand from China was the driving factor. The current New Zealand milk season is expected to remain below the performance level of previous years. The VMP price level rose to the equivalent of € 3,141/t.
Skimmed milk powder (SMP) (approx. share of 25%) followed the VMP prices by a clear margin with an average increase of +4%. Once again, the delivery dates Oct./Nov.-24 were decisive with above-average premiums. The absolute SMP prices reached the equivalent of 2,378 €/t and were below the Chicago prices of 2,458 €/t and the EEX prices in Leipzig of 2,419 €/t.
Pure butterfat prices (approx. 10% share)rose again by +4.8% on average and continued the upward trend of the pre-auction. There was a need for a downward correction in the front dates. In contrast, the price increases in the months Nov.24 to Jan.25 were particularly strong.
Normal butter (approx. 8 % share) made up for the price losses in the previous auction with +3.7 %. Prices rose again to €6,050/t and remain at a medium-term peak price level. EEX Leipzig is quoted at 7,300 €/t and the Chicago prices are quoted at 6,293 €/t.
The average auction result (index) remains above the 10-year average.
