The GDT price index fell 1% at this week’s event, with powder prices sliding and butterfat bouncing around.
WMP fell 1.6% to US$3,100/t on lower than average demand. SE Asian buying again dominated the event, while Middle East buyers lifted their participation for the highest tonnage since March. The outcome was again better than last week’s Pulse result. SMP was down 0.9% on average to US$2,503/t. Fonterra’s prices again took the brunt of the losses, but this time a relatively mild fall for C2 Medium Heat after the mauling on the previous event, while Arla’s product lost just US$20/t on average.
Butterfat demand improved from the previous event, with AMF close to average for a change. Butter continued to slide, losing less than 3% this time after the carnage at the previous event, but again left a weakening forward price curve. AMF recovered some of the lost ground of recent events, but the biggest gains were in earlier delivery contracts, with C2 almost 6% up, Cheddar prices were clobbered, falling 10% to continue their drift towards US cheddar futures prices. Young cheddar C2 prices slumped 14% to a little better than US$3,815/t (CME C2 was just US$3,600/t before this event), with later prices only slightly better through C5 compared to 3.6% on average.