Skip to content
800-884-8290

|

Client Login

|

Open an Account
  • About Us
  • Services
    • Futures & Options Brokerage
    • Organic Grain Swaps
    • Margin Management
    • Commodity Marketing Education
    • Consulting & Insurance
  • Research
    • Dairy
    • Livestock
    • Grain & Oilseeds
    • Ethanol & Biodiesel
  • Account
  • Quotes
  • Contact Us

Global Dairy Trade Results Update – 2/18/20

  • February 19, 2020
  • by Belinda Przybylski
Executive Summary Dairy product prices continued to decline during the GDT event held Feb 18th. Highlights from the most recent auction include:
  • The GDT Price Index declined 2.9% at the Feb 18th event, finishing at a 13 month low level. The GDT Price Index finished lower on a YOY basis for the first time in the past eight months, finishing down 3.7%.
  • Declines in prices within the Feb 18th event were widespread across products offered with the exception of cheddar cheese prices, which increased to a nine month high level. Declines in prices were led by anhydrous milkfat, which declined to a three and a half year low level. Skim milk powder and whole milk powder prices declined to four and 13 month low levels, respectively, throughout the Feb 18th event.
  • Total quantities sold for all products at the Feb 18th event declined seasonally from the previous event but remained higher on a YOY basis for the fourth consecutive event. Volumes sold for all products within the February auctions finished 17.5% above last year’s average volumes sold for the month of February and 29.1% above three year average seasonal figures, reaching a six year high seasonal level, overall.
Additional Report Details Dairy product prices declined 2.9% within the Global Dairy Trade (GDT) event held Feb 18th, finishing at a 13 month low level. The decline in the GDT Price Index was the second experienced in a row. The GDT Price Index represents a weighted-average of the percentage changes in prices between trading events for all products offered. The GDT Price Index finished 3.7% below previous year price levels at the Feb 18th event, declining on a YOY basis for the first time in the past eight months. The GDT Price Index finished 4.9% below the three year average price for the second auction of February, finishing below three year average figures for the second consecutive event. Within the latest auction, declines in prices were led by anhydrous milkfat (-5.5%), followed by butter (-3.9%), whole milk powder (-2.6%), skim milk powder (-2.6%) and rennet casein (-0.9%). The declines more than offset a 5.3% increase in cheddar cheese prices. Lactose, butter milk powder and sweet whey powder were not sold at the Feb 18th event. Whole milk powder prices declined to a 13 month low level as concerns over Chinese demand have been raised with the emergence of coronavirus. Over 90% of Chinese whole milk powder imports originated from within New Zealand throughout 2019. The table below provides a summary of the most recent GDT weighted average winning prices for key products. Butter has been adjusted to 80% butterfat and skim milk powder (SMP) has been adjusted to 35% protein content (equivalent to U.S. nonfat dry milk) in the $/lb columns below. CME spot and average futures prices are based on Feb 14th figures. CME average futures prices are weighted average prices based on the most recently reported percentage of the total quantity sold in each GDT contract period. Total quantities sold for all products at the Feb 18th event declined 2.8% from the previous event but remained 11.3% higher on a YOY basis. The YOY increase in total quantities sold was the fourth experienced in a row. Volumes sold for all products within the February auctions declined 13.6% from average January volumes sold but finished 17.5% above last year’s average volumes sold for the month of February. Feb ’20 volumes sold for all products finished 29.1% above three year average seasonal figures, reaching a six year seasonal high level. U.S. butter prices remained at a premium to GDT winning prices at the Feb 18th event as GDT butter prices declined from the six month high level experienced throughout the previous auction. U.S. spot butter prices are currently trading at a 0.5% discount to GDT prices however CME futures prices traded at a 9.4% premium to GDT prices from Mar ’20 – Jul ’20. Butter was not sold at the GDT auction for Contract 6 (Aug ’20). U.S. cheddar cheese prices finished at a discount to GDT winning prices at the Feb 18th event as GDT cheddar cheese prices increased to a nine month high level. U.S. spot cheddar cheese prices are currently trading at a 17.1% discount to GDT prices while CME futures prices traded at a 12.4% discount to GDT prices from Mar ’20 – Jul ’20. Cheddar cheese was not sold at the GDT auction for Contract 6 (Aug ’20). U.S. nonfat dry milk (NFDM) futures prices remained at a discount to GDT SMP winning prices at the Feb 18th event, despite GDT SMP prices declining to a four month low level. U.S. spot NFDM prices are currently trading at an 11.8% discount to GDT SMP prices while CME futures prices also traded at a 13.3% discount to GDT SMP prices from Mar ’20 – Jul ’20. SMP was not sold at the GDT auction for Contract 6 (Aug ’20).
EU-28 Milk Production Update – Feb ’20
Global Milk Production Update – Feb ’20
Dairy
Ethanol
Livestock
Grain

Recent Dairy Research

  • Global Dairy Trade Results Update – 3/2/21
  • Atten Babler Dairy FX Indices – Mar ’21
  • New Zealand Milk Production Update – Feb ’21
  • U.S. Dairy Cow Slaughter Update – Feb ’21
  • U.S. Milk Production Update – Feb ’21
Atten Babler Commodities LLC
11406 US Route 20 W
Galena, IL 61036
800-884-8290
Privacy Policy
Futures, options and swaps brokerage is provided through Atten Babler Commodities LLC. The risk of loss in trading commodity futures and options and swaps is substantial. Swaps trading should only be undertaken by investors who are Eligible Contract Participants (ECPs) within the meaning of Section 1a(18) of the Commodity Exchange Act. Before trading, you should carefully consider your financial position to determine if futures, options or swaps trading is appropriate. When trading futures, options or swaps, it is possible to lose more than the full value of your account. All funds committed should be risk capital. Past performance is not necessarily indicative of future results. Atten Babler Commodities LLC use sources that they believe to be reliable, but they cannot warrant the accuracy of any of the data included in this site. Opinions and market data are subject to change at any time. Unless otherwise stated the information contained herein is meant for informational purposes only and is not a solicitation to buy futures or options or swaps.
© Copyright 2021 Atten Babler Commodities LLC