GDT event #372 reversed last week’s price index loss, adding 1.4% for the first gain in three events.

WMP retraced three events with gains of 4.8% across contracts to lift prices on average to US$3,988/t. Fonterra removed 1,500t from C3 and C4 prior to the event. Demand was well above average. The SMP outcome was less impressive, rising 1.7% to average US$2,729/t with 300t of product removed from GDT prior to the event.

NZ butter firmed across contracts with the rising EU market in the background. Overall demand was again well above average with butter price up  2.5% on average to US$6,984/t. AMF was punished again, extending the trends in general trade at elevated prices, losing 7.7% on average to US$6,616/t. The heaviest losses were in earlier-delivery contracts, flattening the forward curve. Cheddar lifted 2.5% on average to US$4,846/t. Mozzarella was flat, averaging US$4,161/t.

Meanwhile, the NZX milk price forecast increased from NZ$9.69kgMS to $9.95kgMS as a result of event #372.The range for the forecast has moved to $9.85 – $10.15kgMS, while the modelled spot value of milk has increased to $11.28kgMS.