The GDT index added just 1.5% in event 309, the first gain in 6 auctions, but the headline indicator was weaker than main commodity price gains showed with the final stage of the heavy correction in Instant WMP prices.
SMP lifted 3% or $US124t on average to $US4,240/t. Fonterra MH C2 added $US110/t to $US4,245/t, but the forward curve weakened a little below $US4,200/t. Arla’s product added $US295/t to average $US4,268/t.
WMP posted another mixed result as the price rose 5.7% or $US224/t on average to $US4,158/t, with mixed changes in the detail, as the premiums for instant product normalised to keep the reported “index” marginally higher. Fonterra Regular C2 posted another healthy gain of 6.6% or $US255/t to $US4,120/t, with a flat forward line. The lower offering at this event and a higher portion of instant product for sale ensured strong demand for the limited volumes of regular product.
Butterfat prices were stronger with moderate gains in both commodities. Butter rebounded after two falls, with demand much higher than average, adding 5.5% or $US318/t on average to $US6,068/t. There were consistent gains across all contracts to keep the curve relatively flat. C2 added $US330/t to $US6,085/t, while C6 ended below $US6,000/t. AMF averaged a 2.6% gain or $US158/t to $US6,201/t, but the changes were weaker later pushing the forward curve slightly weaker – C5 ended $US102/t lower that C2. C2 did best, adding 3.9% or $US233/t to $US6,269/t.
Cheddar prices fell by $US270/t to $US5,365/t but the small tonnages sold produced a wide range of outcomes. NZ young cheddar C2 was not traded, but C1, C5 and C6 ended around $US5,550/t, while C3 slipped to $US5,195/t.