GDT event 289 was a bit of an anti-climax after further reductions announced late last week in WMP and SMP offerings over the coming six months again failed to ignite greater buying interest. The result was a mixed outcome – the index was pulled lower by 1% (for its 8th consecutive fall) by the weight of WMP, which shed another 3.5%, while butter improved and SMP steadied for a small gain.

WMP continued to slide on weaker demand and despite further volumes being pulled from the event at late notice, with a similar loss to the previous event, dropping US$132/t on average to US$3,598/t, with varied losses across contracts. Regular product C2 WMP again lost US$140/t to US$3,595/t, but losses varied from US$45/t in C1 to US$235/t in C4, leaving a weaker forward curve that rested above US$3,500t for C5.

SMP steadied after falling in 4 events, adding US$49/t or 1.6% on average to US$3,020/t. Fonterra MH C2 added US$40/t to US$2,980/t, but the gains were better for C3 and C5.

Butter gained US$170/t to average US$4,589/t, with consistent gains across contracts and leaving a flat forward curve under US$4,600/t. C2 added US$184/t to US$4,577/t. AMF added US$53/t on average to US$5,668/t, which was weighed down by losses in C1, while C2 lost US$4/t to US$5,677/t. The forward curve firmed later, flattening just under US$5,700/t with the healthy gains in later delivery prices.