The improving northern hemisphere sentiment again didn’t help at this GDT event. In short, when demand from the major buying region is weak, with little evidence of rapid change, and GDT offer volumes are seasonally increasing, prices usually get smacked. Recall that tonnages of SMP and WMP were brought forward for this event in June, to add to the volumes to be cleared.

WMP average prices fell 8% on one of the lowest demand readings seen on GDT, with the C2 regular price dropping US$240/t to US$2,795/t. Chinese buyers took almost 60% of the tonnage sold, but not enough of them turned up.

SMP was a mixed result and the heavier NZ offering resulted in a small fall of 0.6% or just US$15/t for NZ medium heat in C2, which finished at US$2,430/t, while US and European products achieved increases over previous event averages – US prices lifting near US$130/t on average and achieved US$2,408/t for C2.

Butterfats were both a little weaker but at a contract level the results varied. Butter lost 0.5% on average, with C2 achieving US$4,650/t while AMF was a little weaker, dropping 0.8% on average, while the C2 price dropping below US$4,600/t, to again widen the discount to butter on equivalent terms.

Cheddar prices are always confusing with the small volumes sold. The average fell (weighed by a large drop in the C6 price), while C2 lifted 1.8% to near US$3,900/t.