GDT event #376 event delivered a flat result and was mostly negative for NZ product prices while EU product continued to push higher, as butterfat remained tight in that market.

NZ SMP followed the form of last week’s Pulse to more than reverse the gains from #375. The C2 result lost more than 4% to drop $20/t to US$2,845/t, but that was the weakest contract, with smaller losses for later shipments flattening the forward curve. The premium for NZ product over EU SMP on GDT narrowed, with Arla and Solarec product prices increasing 0.6% and 2.3% on average. WMP was mixed with the notice that Instant products will be limited for coming months. Regular product weakened 1%, but all other contracts fared worse. Instant product lifted 4-5% for nearby events. European WMP lifted 4.9% for C2 reflecting the stronger butterfat market.

NZ butter made small gains in short-term contracts to push C2 towards $7,600/t as demand was again strong. EU product continued to rally, up 5.4% on average as that market continued to firm. Overall prices increased 1.2% to average US$7,667/t. AMF prices were 1-3% weaker across contracts, to further deepen the discount to butter to almost $2,600/t. The average price fell 1.8% ot US$6,561/t.

Cheddar firmed with the stronger EU prices and despite the soft US market which should come into play sometime soon. Mozzarella was again firmer in line with the strong EU market as Solarec product added 4.8%. Lactose posted a small lift of less than 1%.