There was great expectation this time to see if there would be an improvement in demand from regions that typically buy most of the product on GDT, given some recent increases in SGT milk powder futures prices. This event didn’t disappoint and provides the most positive outcome in a while. The index gained 2.5%, to take the overall GDT index to the highest since December.

WMP was the standout, jumping 4.6% on average with stronger than average demand which was led by buyers from China and SE Asia. The Fonterra regular C2 price increased 4.4% to US$3,190/t.

SMP had a mixed result, increasing just 0.4% on average to US$2,787/t, with only a small lift in NZ medium heat prices to US$2,900/t, while Arla’s product jumped more than 7% on a simple average.

Fats were again mixed and went in different directions, increasing the discount for AMF on butterfat equivalent terms. Butter was again driven higher with larger SE Asia and Oceania purchases, while Chinese buying in both fats remained weak.

Cheddar prices lifted 3.4% on average to push above US$4,500/t which will bring some good news for Oceania producers with the weaker US market (as more product has been pushed back onto the CME) and softer quotes in the EU.