1st GDT auction prices in Sep 2024: -0.4 %
The first Aug 2024 Global Dairy Trade (GDT) auction put the above-average price increase of the previous auction into perspective with an average of -0.4 %. Significant downward corrections took place for VMP, while the usual price ratio to VMP was restored for SMP. The repeated high auction volume of 38,346 tons is outstanding. The record is 40,673 tons.
Whole milk powder (VMP) (approx. 50 % auction share) had to compensate for the above-average price increases of the previous auction with -2.5 %. As the world's largest exporter, New Zealand will remain below the performance level of previous years in the current milk season. China, the largest importer, is holding back for income reasons. The VMP price level will fall to the equivalent of € 3,077/t.
Skimmed milk powder (SMP) (approx. 25% share) achieved another considerable price increase of +4.5%, but still remains competitive on the milk powder market. The absolute SMP prices reached the equivalent of € 2,495/t and are above the Chicago prices of € 2,460/t but below the EEX prices in Leipzig of € 2,550/t.
Pure butterfat prices (approx. 10% share)rose slightly by +0.7% on average and smoothed out the upward trend in the pre-auction. The decisive factor was the Nov. 24 delivery date. In this case, too, the focus was on compensatory corrections.
Normal butter (approx. 8 % share) weakened the price increases in the pre-auction by -0.9 %. Prices fell minimally to €6,049/t and remain at a medium-term peak price level. EEX Leipzig is quoted at 7,850 €/t and Chicago prices are around 6,253 €/t.
The average auction result (index) remains above the 10-year average.
