There was another strong result on GDT last night that reflected the continuing tight global supplies of dairy ingredients and products. The index added 4.2% to inch closer to the all-time GDT average outcome.

SMP lifted 6.0% or US$244/t on average to US$4,295/t, the 14th increase in this rally, which has driven average prices up more than US$1,300/t since late July. Fonterra MH C2 gained US$290/t or 7% to US$4,290/t. WMP rose 4.1% or US$242/t on average to US$4,503/t, with stronger gains in earlier contracts.

There were once again mixed changes in fat prices, as the price of butter remained significantly stronger, adding US$327/t on average to US$6,686/t. AMF again posted a relatively meek increase, with the outcome mixed across contracts to flatten out the forward curve. AMF added US$89/t to average US$6,889/t.

Cheddar another round of strong gains, averaging US$197/t to US$5,881/t. NZ young cheddar C2 added US$210/t to end at US$5,825/t.