The GDT price index eased 0.7% at event #327 on a significantly smaller offering of 26,747t. It was a mixed result for fats, a slight fall in SMP and a massive hit to cheddar while WMP prices were slightly higher on average. Chinese buyers sustained their participation in milk powders at this event, but the tonnages fell with the much smaller offering – near to 2,750t less was sold this time.

SMP prices fell 1% to average US$2,739/t. The NZ product was a little weaker – the difference this time were the lower average prices achieved by Arla product in line with the trends in the EU market, restoring a small premium to NZ. US SMP also improved and was just $56/t lower than the NZ result for C3.

Demand in WMP was on average in the early rounds and the bidding thereafter was very similar to the previous 3 outings, but this was the shortest auction of the last 7 events. WMP prices increased 0.4% to US$3,277/t.

Butter was mixed and came off lightly given the weakness in the EU market, prices fell 0.5% on average to US$4,899/t. AMF again took the hit, a little smaller than the previous event which has widened the discount on butterfat equivalent terms. AMF prices shed US$107/t or 2% to average US$5,340/t.

Cheddar prices were smashed, unsurprising in view of the large premium that developed over the previous 3 events when GDT prices firmed while the markets in the EU and US weakened. Barrel cheddar was still near US$3,600/t earlier in the week with heavy discounting for milk going into cheese plants in the Upper Mid-West of the US with a regional glut of milk. This weeks’ GDT cheddar price fell US$577/t or 11.3% to average US$4,509/t.