There was a bit more of interest in the detail of this event, with the index slipping just 0.7% for the 3rd dip in 4 events as high prices corrected. The hammering for fat prices was overdue and expected with a higher volume offered at this event.
SMP lifted by US$68/t to average US$3,433/t, with consistent increases across C1 to C5, and small fall in C6. The Fonterra MH result posted lifts of $55-80/t across contracts; C2 added US$70/t to US$3,470/t. European SMP improved US$106/t and US product (only C3) firmed US$110/t. WMP again inched higher on average by US$18/t to US$4,115/t, with the highest gain in C3, while C4 fell. Regular product C2 WMP added US$65/t to US$4,145/t. Instant product prices slumped – C2 losing $300/t and C1 lost US$250/t, leaving C2 US$270/t below regular.
Fats prices were expected to weaken, and with a higher volume on offer and pre-event prices at giddy heights, both were hammered. Butter lost US$701/t or 12.2% to average US$5,035/t. C2 took the biggest hit of US$755/t with the smallest loss in C3 at a meagre US$550/t. AMF fell 4.5% or US$273/t to average US$5,730/t, with similar losses across contracts, and C6 lifted to pull the forward curve almost flat. C2 lost US$243/t to US$5,733/t. Cheddar sold for C4 to C6 at this event for an average of US$4,274/t which was US$162/t down on #282. Lactose continued to slip and lost US$24/t in its 3rd successive fall to finish at US$1,236/t.