This GDT event was generally positive after the previous two moderate falls, to deliver the first improvement in the overall index since the first event in May this year. The index lifted 2.7%, driven by a 6% recovery in average WMP prices, although SMP prices continued to weaken.

The WMP C2 regular price was pulled back above US$2,600/t, but the rescue didn’t come from China. Low starting prices for the event brought out bargain hunters from the Middle East and SE Asia & Oceania.

SMP on average fell 2%, Fonterra’s prices took a larger hit of US$105/t for C2 Medium Heat which fell below US$2,200/t, while Arla’s product on simple average achieved US$137/t more.

Butterfat prices steadied and made small gains, this time AMF getting the better outcomes. Chinese buyers again bought half the butter tonnage while SE Asia & Oceania buyers took the highest AMF tonnage, but the sales were again widely spread. The AMF discount in fat-equivalent terms eased below US$1,000/t.

Cheddar price changes were all over the place for a small loss in the average after C2 posted a healthy US$150/t gain, but later contracts were hammered to end close to US$4,000/t. The C2 young cheddar price recovered 4% to reach US$4,200/t. Lactose came back onto this event and there may be some regrets as it was smashed to end a little above US$600/t. The latest US domestic price was US$860/t last week.