GDT down again

by | Jan 11, 2023 | GDT, Global

The first GDT event of 2023, which took place last week, picked up right where we left off in 2022 with weak demand and sliding prices. There was poor demand for SMP and AMF while Chinese buyers returned to the platform, lifting their percentage involvement and tonnage purchased of WMP.

SMP dropped 4.3% or US$127/t on average to US$2,838/t on weak early-round demand. Fonterra MH C2 lost US$135/t to US$2,855/t, with a dead flat forward curve. Demand in rounds 1-6 was again well below average for GDT events. WMP fell 1.2% or US$38/t on average to US$3,208/t with weak demand in the first 6 rounds. Fats were weaker and this time AMF took the brunt to almost wipe out its premium over butter. Butter lost 2.7% or US$123/t (same as #322) on average to US$4,479/t, with losses across contracts that were smaller for later deliveries. C2 lost US$155/t to US$4,470/t. AMF dropped 4.9% or US$280/t on average to US$5,395/t with consistent gains across contracts 2 to 5 to leave a flat forward curve. C2 lost 5.4% or US$305/t to US$5,371/t.