2nd GDT auction prices in Sep 2024: +0.8 %
The second Sep 2024 Global Dairy Trade (GDT) auction more than offset the price decline of the previous auction with an average of +0.8 %. Significant upward corrections have taken place in milk powder. Butterfats appear to have reached an all-time high. The repeated high auction volume of 38,814 tons is outstanding. The record is 40,673 tons.
Whole milk powder (VMP) (approx. 50% of the auction volume) partially compensated for the price decline of the previous auction with +1.5%. In New Zealand, the milk season usually reaches its annual peak in October. China, the largest importer, is showing some pent-up demand. The VMP price level rises to the equivalent of 3,099 €/t.
Skimmed milk powder (SMP) (approx. 25% share) achieved a repeated price increase of +2.2%. Measured against the other prices, a convergence has taken place. The absolute SMP prices reached the equivalent of € 2,525/t, but are still below the Chicago prices of € 2,703/t and the EEX prices in Leipzig of € 2,674/t.
Prices for pure butterfat (approx. 10% share)fell by -1.2% on average, offsetting the upward trend in the previous auction. For the first few months of the new year, the surcharges remained just in positive territory. In this case, too, the focus was on compensatory corrections.
Normal butter (approx. 8 % share) once again suffered price falls of -1.7 %. The price trend has passed its peak. Prices fell to €5,884 per tonne, but still remain at a comparatively high level by Asian standards. EEX Leipzig is quoted at €8,113/t and Chicago prices are around €6,151/t for the Oct. 24 date.
The average auction result (index) remains above the 10-year average.
