GDT auction results of 2 July 2019 narrowly held - Butter prices continue to fall The July 1, 19 auction of the Global Dairy Trade (GDT) has largely halted the price decline of its predecessors. The average result is -0.4% for the pre-auction with slightly higher sales of 24,711 t. Compared to the months before April and May are the handling volumes by approx. 50% up. However, with regard to the individual products and delivery months, there are pleasing stable to rising trends in others, and the price trend continues to fall. Whole milk powder (VMP) , with 0.0% on average in all delivery months, reached a standstill of the downward trend in prices. With +4.6%, the month Jul.-19 stands out, which ensured that the weak negative results of the following months were compensated. New Zealand as the main supplier is currently at the low point of milk deliveries. Notable replenishment replenishment comes in 2 months. Skimmed milk powder (MMP) recovered noticeably after the interim price decline of +3.2%. In particular, the months of Aug and Sep.-19 contributed to the average result with above-average surcharges. A price fixing well above the EU intervention line seems to be sustainable. Butterfat averaged -1.9% for the third time in a row. The deciding factor was the hefty price reduction for the delivery month Jul.-19 with -13.1%. The remaining months performed relatively moderately with deductions around 2%. Normal butter suffered for the 2nd time in a row a sharp drop in prices at -4.7%. In particular, the first 3 months of delivery performed better than average. or -7.2%. The butter prices can not keep up in the high-price range and tend rather to the upper midfield. The offer is more than sufficient for the demand. The auction results indicate the end of a seasonal price low in the summer period . The market is only picking up increased turnover at favorable price conditions. Demand is limited. The expectation of the rising milk deliveries of New Zealand in Ok.-19 let buyers cautiously.It is expected that dairy products will be sufficiently available in the future. The next auction results will show it.
