This week’s event delivered the expected moderate losses across milk powders that had been anticipated in SGX futures markets and the weaker sentiment in the northern hemisphere. The index fell 5%. Demand for all major commodities was weak – SMP near the lowest seen on GDT.
SMP fell 8.7% or US$354 on average to US$3,709/t. Fonterra MH C2 dropped US$430/t to US$3,725/t, with a flat forward curve. The difference in NZ and EU SMP prices narrowed, with heavier losses for Fonterra’s product.
WMP dropped 5.2% or US$204/t on average to US$3,757/t. Fonterra Regular C2 lost US$235/t to US$3,735/t, with lighter losses later to leave a flattish forward line, with C5 achieving US$3,700/t.
Butterfat prices were also weaker on poor demand, with similar falls for both categories, keeping prices adjacent and sustaining the large discount for AMF. Butter lost 2.1% or US$118/t on average to US$5,530/t, with consistent falls across contracts to leave the forward curve flat. C2 lost US$144/t to US$5,526/t. AMF lost 2.2% on average or US$126/t to stay just above the butter price at US$5,580/t. C2 lost 2.4% to US$5,553/t.
Cheddar prices fell on average by US$83/t to US$4,825/t to stay well above this week’s US prices. NZ young cheddar C2 fell US$85/t to US$4,785/t