The 6th GDT event of 2023 drew disappointing demand across commodities, especially SMP and fats while cheddar was again hammered. The index dropped 2.6% with losses across virtually all contracts traded. China’s involvement was mostly steady, in fact buying more powder than the previous event in both cases. There simply wasn’t enough interest from other regions.
The biggest losses were posted in cheddar, down 10% for the 2nd event in a row, with the NZ C2 for Young Cheddar dropping almost 15%.
SMP fell 3.3% on average, with the benchmark C2 contract for medium heat losing $US90/t to $US2,670/t, which managed to hold onto a very small premium over Arla’s product. WMP suffered a milder loss of 1.5% on average but the C2 Regular price slipped back under US$3,200/t.
Fats were both weaker – AMF suffering a larger percentage loss with weaker demand from several regions.