2nd GDT auction prices in July 2024: +0.4%
The second July 2024 Global Dairy Trade (GDT) auction brought the strong setback at the beginning of July to a halt with an average of +0.4 %. The recent weak results in the butter sector in the pre-auction were made up for again. The Aug. date in particular stands out with strong premiums. The auction volume remains at an increased level of 22,954 tons.
Whole milk powder (VMP) (approx. 50 % auction share) continues its downward trend for the time being with -1.6 %. The main reason for this remains China's restrained demand as a result of weak economic development. The New Zealand milk season, which starts in a few weeks, offers the prospect of a growing supply. The VMP price level falls to the equivalent of € 2,881/t.
Skimmed milk powder (SMP) (approx. 25% share) has followed the VMP prices with an average of -1.1%. The influencing factors are of a similar nature. With the exception of Oct. 24, prices have fallen in all delivery dates. The absolute SMP prices reached the equivalent of 2,533 €/t and are below the Chicago prices of 2,473 €/t and the EEX prices in Leipzig of 2,460 €/t.
Pure butterfat prices (approx. 10% share)have risen again by an average of +4% and made up for some of the sharp setbacks in the previous auction. There were particularly strong increases in the front dates. There was obviously pent-up demand.
At +0.8 %,normal butter (approx. 8 % share) was able to maintain the reduced level of the previous auction. Nevertheless, at €6,056/t, prices are at a medium-term high. EEX Leipzig is at the equivalent of €6,669/t and Chicago prices are quoted at around €6,441/t.
The average auction result (index) remains just above the 10-year average.
