- GDT auction in Jul. 2022: - 4.1 %
The first July 2022 auction of the Global Dairy Trade (GDT) has significantly reduced prices for all dairy products. Skimmed milk powder and normal butter suffered the biggest price setbacks. Auction volumes have risen slightly, but remain seasonally low.
Whole milk powder (VMP) (approx. 50 % auction share) was still able to achieve a positive result for the August delivery date with a premium of 3.5 %, but the following months fell significantly by more than -5 %. Absolute prices fell to 3,961 $/t, but are still above the multi-year average. The main reason for this was the decline in demand from China.
At -5.2%,skimmed milk powder (SMP) (share of 25%) reversed the positive results of the previous auctions. Nevertheless, prices remain in the high price range of the last 5 years. The absolute SMP prices reached 4,276 $/t and are above the EEX prices (4,063 $/t) and the Chicago prices (3,942 $/t).
Pure butterfat prices (10% share) have once again had to accept price reductions. Price markdowns reached an average of -3.1%. The average product price fell to 5,706 $/t, but is still in the upper range of the last 5 years.
Normal butter (8% share) again suffered the biggest setback at -9.1%. Prices are falling out of the high price range of the last 5 years and are now in the upper mid-range. Prices were lowered across the board in all delivery months. The absolute butter price falls to 5,648 $/t. EEX Leipzig is quoted at the equivalent of 7,519 $/t and Chicago prices are falling at 6,180 $/t.
