GDT event #267 slides a little

by | Sep 4, 2020 | GDT, Global

The weaker WMP prices pulled the index down by 1.0%, but this was again a mixed event with firmer SMP the major point of interest. Demand again generally fell short of GDT averages, but this is that time of the year of rising offerings.

SMP gained 2.1% or US$55/t to average US$2,608/t. Price changes were mixed, but C1 dropped 12% to come back to the pack, while C3 prices also came back into alignment to leave a weaker forward curve that finished a little below US$2,600/t.  WMP fell across all periods, losing 2.1% or US$55/t to US$2,884/t. The losses were similar for regular product, where C2 lost $40/t or 1.4% to US$2,900/t. Persistent buying from China was again the most positive take from this event.

Fats were both marginally weaker with big gains in short-term offers making the numbers look better. Butter lost US$36/t or 1.1% to average US$3,334/t, dragged lower by heavier losses in early deliveries in C4 and C5. C2 was flat, losing just 0.2% or US$5/t to US$3,310/t. AMF lost just 0.5% or US$21/t to average US$3,852/t, with gains early and moderate losses in later delivery periods of around US$90/t, leaving a firmer profile that lifts short of US$4,000?t. C2 gained 1.6% or US$59/t to US$3,800/t. Demand was down, near worst recorded.

Cheddar was slightly weaker, losing US$14/t on average, with C2 1.3% higher to US$3,442/t and later delivery prices ended a little better than C2. Lactose prices steadied and gained US$11/t, to US$1,314/t.