GDT edges higher

by | Feb 22, 2024 | GDT, Global

GDT event #350 recorded a 0.5% increase in the overall price index on the lowest volume offered since June last year.

WMP prices were expected to weaken with the slippage in futures prices in the past 2 weeks, and they obliged, down US$74/t to US$3,388/t. This was despite significantly improved buying by China, with a lift in the tonnage sold (while volumes sold seasonally decline) as Middle Eastern buyers pulled back, taking the lowest tonnage since July. SMP prices lifted again, up US$30/t to US$2,788/t. Most of the price action came as EU prices made a partial catch-up against the hefty Oceania premium from event 349.

Prices for AMF benefitted from broad-based demand from several regions, led by Latam buyers and given the still huge discount to butter, lifting almost 9% on average to US$US6,552/t as large gains for later deliveries flattened the forward price curve. Butter prices were flat, averaging US$6,526/t.  

Cheddar prices fell a whopping US$326/t to average US$4,143/t, no doubt reflecting the abundance of Oceania product and a still-weak US market. Mozzarella provided the other big surprise of the event, bouncing US$200/t to just US$3,960/t, bucking the weaker trend in recent EU spot market quotes.


GDT 20 Feb 24