GDT Event #392 posted the seventh consecutive overall decline with the index down 3.0% and weaker prices across all products. Butter and AMF led the losses.

WMP average prices declined for the sixth consecutive auction. The NZ regular CP2 contract fell by 2% and WMP remains cheaper than its synthetic value. Early-round demand was weak and relative North Asia purchases were down on the prior event and the same auction last year. At lower prices, the Middle East continued lifting purchases to account for just below a quarter of total volumes sold. EU WMP (Solarec) CP2 fell to US$3,715/t, a healthy premium to NZ. NZ Medium Heat SMP moved marginally lower on average with the largest decline in the CP1 contract (-1.2%). In US$ terms, Arla and Solarec CP2 product prices declined by -1.8% and -0.4%, respectively. CP1 Solarec was slightly higher to US$2,445/t, however. North Asia lifted purchases, while SE Asia buyers reduced involvement.

NZ Butter prices fell significantly with the CP2 contract down 8% from the prior auction to the weakest level since January 2024. China continued to dominate the buy-side. Solarec butter prices declined as well, with CP2 down to €4,579/t. AMF prices fell on average with the CP1 contract down 7%, while CP2 and CP3 each declined by ~5%. AMF buy-side activity was relatively evenly split between the Middle East, China and Southeast Asia with each taking close to 30% of volume. The AMF discount to butter narrowed to US$458/t – the tightest gap since December 2024.

Cheddar again posted consistent declines. The CP1 contract fell by 3.4% from the prior auction to its lowest mark going back to August last year but remains at a premium relative to US spot cheddar. EU Mozzarella prices declined and remain well below US barrels with CP2 Solarec product at €2,767/t (or $1.45/lb). This compares to €2,775/t achieved for Arla’s CP2 and CP3 product.