Prices for all commodities fell at this week’s GDT event #306. There were some offer volume increases for WMP and fats before this event, which added to the weakness in relative starting demand, while powder futures were also softer in the run-up.
SMP fell 4.2% or US$191t on average to US$4,408/t, after an amazing rally of 17 events. Fonterra MH C2 lost US$215/t to US$4,410/t, but the forward curve was relatively flat. The difference between NZ and EU SMP prices was a little narrower, dipping under US$100/t, as Arla’s product lost US$203/t on average.
WMP fell heavily by 7.2% or US$325/t on average to US$4,207/t. Fonterra Regular C2 slumped US$320/t to US$4,000/t, but the forward curve was firmer, as C4 ended at US$4,250/t. Instant prices again went strongly against the trend and posted strong rises, C2 gaining US$310/t to US$6,105/t, while the C1 went to US$7,280/t and the C3 price to US$7,340/t.
Butterfat prices were weaker on softer demand, as butter dropped 3.6% or US$251/t on average to US$6,640/t, but changes were mixed. C2 lost US$317/t to US$6,650/t. AMF posted a milder fall, dropping 1.5% or US$106/t on average to US$6,802/t with result for later deliveries faring better.
Cheddar prices fell on average for the first time in 14 events losing US$60/t to US$6,185/t as the losses were milder later. NZ young cheddar C2 lost US$170/t to end at US$6,160/t.