Another moderate fall on GDT

by | Jul 20, 2022 | GDT, Global

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