In line with expectations, average prices fell across all products (except cheddar) at GDT #388 with the index down 0.8%. Declines were not as sizable as anticipated despite seasonally high volumes on offer going into the NZ peak in addition to lower engagement by China. SE Asia and Middle East buyers stepped in to support milk powder prices.

WMP declined modestly as relative demand was better than the previous event. NZ Regular CP2 fell by 0.7% from the prior auction, settling at US$3,760/t. SE Asia engagement picked up, while China activity slumped to a 3-year low. EU WMP (Solarec) CP2 fell nearly 6% in Euro terms to €3,702/t (US$4,395/t). NZ MH SMP delivered positive results for CP1 to CP3. Other NZ products moved mostly lower. Nearby EU prices dropped by a larger margin with CP2 Arla product down 3% in USD terms. The Middle East bought the most volume since mid-2023, and SE Asia picked up more volume than the prior event.

NZ butter and AMF outperformed pre-event expectations, particularly when compared to notable declines in US and EU spot values. NZ AMF prices remain heavily discounted relative to butter, with the biggest price declines for each product in CP6 at this event. No EU product was traded.

Cheddar bucked the softer overall trend, with the average price up 2.2% from the prior event and the biggest gain in CP2. EU Mozzarella was hit hard. Only Solarec product sold to EU buyers, and prices dropped to US$3,860/t – down 9.6% in USD terms and -11.4% in Euros. Lactose was not offered.