This event fostered a continued divergence between Oceania and EU markets and followed the form of the previous auction 3 weeks ago, as WMP and butterfat prices weakened and SMP crept higher. The index fell 1.0% on the weight of the WMP volumes.

SMP lifted 1.2% or $54t on average to $4,599/t, the 17th increase in this amazing rally. Fonterra MH C2 added $70/t to $4,625/t, but there were mixed changes for later shipments, and C5 ended at $4,670/t. The difference between NZ and EU SMP prices was wider as Arla’s product added just $15/t.

WMP fell 1.4% or $64/t on average to $4,532/t and again would have been worse but there was another strong lift in instant prices. Fonterra Regular C2 fell 4% or $180/t to $4,320/t, but the forward curve was firmer, as C4 ended at $4,455/t. Nth Asian buyers stood back, taking near 30% for the lowest tonnage at an event for some time. WMP regular product ended $305/t lower than NZ Medium Heat SMP, the largest difference in that direction since 2015.

Butterfat prices were weaker on softer demand, as butter dropped 1.0% or $67/t on average to $6,891/t, but changes were mixed. C2 posted a small gain of $26/t to $6,967/t, while C5 dropped $255/t to $6,775/t. AMF posted a larger fall, dropping 2.9% or $203/t on average to $6,908/t with result for later deliveries faring better. C2 lost $269/t to end at $6,860/t.

Cheddar prices again went up slightly on average (up $60/t to $6,472/t) as the changes were mixed but all favorable, with stronger gains for earlier periods. Lactose shed $20/t to $1,598/t.