After three negative events, last night’s GDT auction posted a 2.4% gain in the index with mixed outcomes across commodities but winning prices for both milk powders lifted with better demand.

SMP steadied, adding US$85/t or 2.9% on average to US$3,057/t on weaker than average demand, although with the higher volumes on offer, the sales into China continued to be well above prior year levels. Fonterra MH C2 gained US$95/t to US$3,065/t, with a flat forward curve. Both Arla and US product came back to GDT.

WMP lifted 3.6% or US$118/t on average to US$3,397/t. While Chinese and SE Asian buyers backed off, higher sales were won by Middle Eastern buyers that know when to come in for a bargain. Fonterra Regular C2 added 2.8% or US$90/t to US$3,340/t, with a slightly firmer forward line for later deliveries to US$3,445/t for C5.

Fats were on balance stronger, with mixed results as butter was this time the weaker. Butter lost 0.8% or US$39/t on average to US$4,829/t, with varied losses across contracts but left a firmer forward curve. C2 lost US$58/t to US$4,795/t. AMF lifted 2.7% or US$149/t on average to US$5,711/t with similar gains across contracts 2 to 5 to leave a flat forward curve. C2 added 3.2% or US$179/t to US$5,733/t.

Cheddar was slightly weaker, losing 1.2% or US$56/t on average to US$4,746/t. NZ young cheddar C2 lost US$20/t to US$4,730/t. There were mixed results across contracts, with C4 doing worst to end at US$4,685/t. Lactose slid US$64/t to US$1,236/t.