The first GDT event of 2022 was a mixed bag last week with the overall price index rising 0.3%, and with most of the action in fats and cheddar.

WMP prices were flat on average at US$3,866/t, but a small lift in regular C2 product was driven by a stronger % involvement from Chinese buyers, purchasing the highest event tonnage since April last year. The weaker demand for SMP in China that is also being seen in official trade data is not a surprise given the apparent large stockpile built there at lower prices. SE Asian buyers stepped up however to ensure there was sufficient demand to lift prices in this event. The advantage for EU over NZ medium-heat SMP was a little weaker, as SMP lifted to US$3,773/t for the 11th straight gain on average.

There were mixed changes in butterfat prices. Butter averaged US$5,868/t, with small changes across all contracts. C2 added US$45/t to US$5,880/t for the 7th consecutive price gain in this rally that has added more than US$1,000/t. The forward curve eases to a little above US$5,800/t. Meanwhile, AMF lost ground, reversing last events gains to average US$6,668/t, posting consistent losses from C2 to C4, leaving a flat forward curve. Cheddar results were strong with a 4.7% gain to average US$5,487/t.