The 2nd GDT event of 2023 was far more positive than the two recent moderate falls either side of the festive break on the auction platform, with neutral results for powders, slightly weaker fats and a stronger lift in cheddar, leaving index just 0.1% weaker.

SMP surprised on gloomy background sentiments and steadied at this event, adding just US$4/t on average to US$2,842/t despite weak early-round demand. Fonterra MH C2 lost US$10/t to US$2,845/t, with a dead flat forward curve.

WMP also averaged a small gain, up US$10/t to US$3,218/t. Fonterra Regular C2 also added US$10/t to US$3,180/t, with forward line for later deliveries rising to US$3,275/t for C5.

Fats were again weaker at this event, but only marginally this time with AMF again faring a little worse. Butter lost 0.7% or US$30/t on average to US$4,449/t, with small losses across C2-c5. C2 lost US$45/t to US$4,425/t. AMF dropped 1.1% or US$58/t on average to US$5,337/t with a mixed set of results across contracts to leave a rising forward curve. C2 lost US$49/t to US$5,322/t.

Cheddar was the most positive of all commodities, adding US$181/t on average to US$4,871/t. NZ young cheddar C2 added US$210/t to US$4,865/t, with a flat forward curve.