Weak demand for SMP and butterfats pulled the GDT Index down 3.3% at event 335. SMP demand was the weakest at an event since September, pulling the average price 5.3% weaker, while the Fonterra MH product dropped 9.7% or US$270/t to US$2,500/t. Arla’s product fared better, though dropping to US$2,435/t. China and Se Asia dominated the buying.

WMP was the slight exception to a gloomy outcome for sellers. The results again produced minor changes (other than some buyers covering critical C1 needs) despite volumes sold rising almost 1,000t from the previous event, with the average price losing 0.7%, and the C2 Regular product losing 1.8% to US$3,085/t. This was despite a much weaker Chinese involvement – the lowest ever seen on GDT.

Fats were again the worst performers at the event, but this time it was Butter that melted, dropping 10% on average with the C2 price 13% weaker to US$4,880/t, wiping out the steady gains from the previous 4 events. AMF lost 3.8% or US$179/t, reducing the discount on fat equivalent terms for the C2 contracts to US$1,332/t.

Cheddar got off lightly, losing 3.2% on average to US$4,386/t.