GDT: fats a little weaker

by | May 19, 2021 | GDT, Global

GDT event #284 was quiet but for the continued weakening of butter prices, but changes this time were much smaller than the plunge at the previous event. The index lost just 0.2%.

Chinese buying again dominated the results for milk powders with demand remaining higher than normal at this time of year. SMP lifted by US$14/t to average US$3,447/t, with small mixed changes across contracts that stretched from a gain of US$74/t for C1 to a loss of US$47/t in C3. The Fonterra MH result did better for earlier deliveries with minimal change in C3 to C5. C2 added US$35/t to US$3,505/t while European SMP did better on average to improve US$75/t and US product (only C3) lost US$45/t to US$3,190/t.

WMP again inched higher on average by US$8/t to US$4,123/t, with small changes and the highest gain in C4. Regular product C2 WMP lost US$5/t to US$4,140/t.

Fats prices posted smaller losses than might have been expected. Butter lost US$106/t or 2.1% to average US$4,929/t, but changes were mixed. C2 lost US$105/t, but C3 added US$180/t. AMF was flat at US$5,730/t, with a standout jump in C1 prices but C2 gained US$22/t to US$5,755/t before heavier losses in C3 to C5 to leave a weaker forward curve.

Only 219t of cheddar sold for C4 to C6 at this event for an average of US$4,321/t which was US$47/t up on #283. Lactose recovered a little after a few losses to gain US$15/t to at US$1,251/t.