The index fell for a second consecutive event at this week’s GDT #402 with mostly lower prices. The fats complex dragged down the overall index by 2.7%, with price increases for SMP and some cheese origins. Chinese buying rose from the last event but remained below the prior two years.

Powders were more resilient. Fonterra C2 Regular WMP dipped 0.7% to US$3,625/t, while Fonterra MH C2 SMP prices rose 1.1% to US$3,525/t due to strong relative demand. EU pricing also gained. NZ and EU SMP remain at a large discount relative to the US. Butter and AMF saw lows from January given big milk supply growth and competitive pressure from the US. The NZ C2 average price dropped 9.1% to US$5.815/t, while the Solarec C2 price lost 0.6% to US$4,745/t. AMF fell 9.5%, with C2 average prices down 9.6% to US$6,311/t. 

Cheese prices were choppy. NZ Young Cheddar C2 rose 1.9% to US$4,835/t and Solarec’s C2 Mozzarella fell 3.1% US$3,850/t. Lactose surged further, picking up 8.2% to US$1,573/t.