This week’s event brought moderate losses across most commodities, as not enough buyers turned out and the index lost 4.1%. SMP fell 5.0% or US$213t on average to US$4,063/t. Fonterra MH C2 dropped US$190/t to US$4,155/t, but the forward curve weakened to a little above US$4,000/t by C5. WMP dropped 4% or US$164/t on average to US$3,961/t. Fonterra Regular C2 lost US$135/t to US$3,970/t, with heavier losses later to leave a weaker forward line, with C5 dipping below US$3,900/t.

Butterfat prices were weaker on poor demand, this time the damage was done to butter, not surprising given the huge discount AMF developed in recent events. Butter lost a whopping 9.1% or US$565/t on average to US$5,648/t, with consistent falls across contracts to leave the forward curve flat. C2 lost US$615/t to US$5,670/t. AMF lost 3.5% on average or US$207/t to this time lift above the butter price at US$5,706/t with consistent losses across C2 to C5.

Cheddar prices defied the trend and increased on average by US$33/t to US$4,908/t to lift above this week’s US prices. NZ young cheddar C2 was offered after missing the previous two events, pricing at US$4,876/t, but C3 to C5 lifted to near US$4,900/t. Lactose was sold at this event for the first time in 5 events, averaging US$1,493/t, a US$72/t fall since the last outing in April.