- GDT auction in Sep. 2022: + 2 %
The second Global Dairy Trade (GDT) auction in Sep 2022 once again resulted in higher prices by an average of +2% after the five setbacks in the past. Pure butterfat and whole milk powder were once again the mainstays. Auction volumes were unusually low for the current season.
Whole milk powder (VMP) (approx. 50% of the auction share) again achieved a strong result with an average increase of +3.7%. Prices in the coming delivery dates show a consistently positive trend. This is due to the short supply and an upturn in demand from China. Absolute prices rose to 3,733 $/t and are in line with the good multi-year average.
Skimmed milk powder (SMP) (25% share) was unable to maintain its position after the cuts in the pre-auctions, falling by -0.7%. With the exception of the leading dates, prices are in negative territory. Nevertheless, a level above the 5-year average is being maintained. The absolute SMP prices reached 3,547 $/t and are below the EEX prices (3,725 $/t), but above the Chicago prices (3,462 $/t).
Pure butterfat prices (10% share) have once again achieved above-average increases of +4% (pre-auction +13.9%) % on average. However, the later delivery dates are falling slightly. The average product price rose to 5,901 $/t and is just above the 5-year average.
Normal butter (8% share) was not quite able to maintain its position. The two front dates in particular have pulled the average value down sharply. However, the result remains in the upper mid-range of the last 5 years. The absolute butter price falls to 5,356 $/t. EEX Leipzig is quoted at the equivalent of 7,250 $/t and the Chicago prices are at 6,816 $/t.
The negative price trend of the summer months was replaced by two positive auction results in Sept. 2022. The background to this is a shortage of supply with demand picking up again, particularly from China.
