The GDT Index was unchanged at this week’s GDT event #334 with product results reflecting weaker protein and cheese markets globally, and with WMP value drifting sideways.

SMP demand remained well below average, yielding an overall price of US$2,667/t, down US$88/t or 3.2%. The gap between NZ and European product continues to widen. WMP price averaged US$3,172/t unchanged from the prior event with demand a little better than normal thanks to increased SE Asian and Middle Eastern buying. With 1,000t pulled from the auction this week, the C2 result was US$60/t up on last week’s Pulse auction and better than SGX futures expectations.

Fat results continued to diverge, with strong butter demand pushing prices 5.7% or US$291/t higher to average US$5,379/t. AMF was just 0.6% higher on average, with the C2 price down, despite some heavier buying from SE Asia and Oceania, perhaps reflecting more cream substitution occurring in Australia. Overall AMF prices averaged US$4,758/t with some improvement in the forward curve to US$4,900/t.

Cheddar prices finally followed the weaker trends from competitors with Young Cheddar losing US$70/t, while the heavy drop in the C1 result from the extreme outcome at the previous event pulled the average US$135/t lower.