GDT price index stabilizes at high levels

At the auction in mid-May, the average price index at the world dairy auction GDT remained stable.

The increase in the price of SMP, cheese and lactose was fully offset by a decrease in the price of milk fat and milk fat. As a result, the value of the GDT index fell by 0.2%, or 3 points, to 1,287 points. (in mid-May 2020 - 902 pt.).

The weighted average indicative price for dairy products amounted to 4,150 USD/t according to the results of the last trades. Trading volumes (21.1 thousand tons) are 26% higher than the level of the same period in 2020, but decreased by 4% compared to the previous auction and became the lowest since mid-May 2020.

The dynamics of prices for most commodity items at the auction was rather sluggish, changes did not exceed 1%. The only exception was butter with a decrease of 2.2%.

The weighted average price for whole milk powder (WPM) - the key product of the trading floor - decreased by 0.2% at the last auction, the average price was 4,123 USD/t. Variation in contract prices within the category also turned out to be quite moderate: the maximum decrease (-0.6%) - for deliveries in October (4,153 USD/t) - November (4,176 USD/t), maximum growth (+0.6%) – for deliveries in September (4,205 USD/t). The lower limit of the updated price corridor was formed by the nearest June deliveries (4,101 USD/t), the upper one – by September shipments (4,205 USD/t).

Prices for skimmed milk powder also remained relatively stable with an upward trend (+0.7%, up to 3,447 USD/t). Within the category, the price dynamics turned out to be more pronounced: all contracts, except for August ones, went up (-0.5%, to 3,375 USD/t), the most significant increase in prices was for the nearest June contracts (+1.9%, to 3,542 USD/t ). The updated price corridor was formed by deliveries in August (3,375 USD/t, -0.5%) and the next June deliveries (3,542 USD/t, +1.9%).

Milk fat prices continued to decline. At the same time, dehydrated milk fat lost little in price (-0.1%, to 5,730 USD/t): the decrease in prices for deliveries in August-November was offset by an increase in the price of June shipments by 4.0% (to 5,992 USD/t); the price corridor was formed by shipments in October (-1.5%, up to 5,616 USD/t) and June (+4.0%, up to 5,992 USD/t).

At the same time, butter prices fell more significantly – by 2.2%, to USD 4,929/t, widening the price gap between butter and AMF to USD 801/t, which was the largest price difference since the beginning of 2020. for butter was recorded almost under all contracts, except for August ones (+3.5%, up to 5,365 USD/t). The price corridor was formed by July (4,890 USD/t, -2.1%) and August (5,365 USD/t, +3.5%) contracts.

The recovery (after a decrease at the auctions in early May) increase in price levels at the last auctions affected lactose (+1.6%, up to 1,251 USD/t) and cheddar (+1.0%, up to 4,321 USD/t). Compared to mid-May 2020, the average price of contracts (in dollar terms) for the supply of SMP increased by 35.2%, SPM - by 54.0%, butter - by 29.6%, cheddar - by 11.8% .

 milknews.ru