GDT slumps as weak Chinese demand keeps buyers away

by | May 4, 2022 | GDT, Global

GDT event 307 produced a large fall in prices across the board as the fears of the effects of protracted COVID restrictions in China kept buyers on the sidelines.

SMP fell 6.3% or $278t on average to $4,130/t. Fonterra MH C2 lost $225/t to $4,185/t, but the forward curve was relatively flat. Arla’s product lost more heavily than NZ product this time.

WMP again fell heavily by 6.9% or $291/t on average to $3,916/t, with mixed changes in the detail, given the support for Instant prices despite the falling regular product market. Fonterra Regular C2 slumped $295/t to $3,705/t, but C3 ended only $75/t lower at $3,970/t, and only C1 to C3 were sold.

Butterfat prices were savaged on historically low event demand. Butter dropped 12.5% or $833/t on average to $5,807/t, and C2 lost $854/t to $5,796/t.  AMF posted a slightly milder fall on average, dropping 11.7% or $794/t to $6,008/t with C2 losing $893/t to end at $5,907/t. Cheddar prices fell on average $533/t to $5,652/t as NZ young cheddar C2 lost $355/t to end at $5,805/t.