Last night’s GDT event reflected the faltering rally in the northern hemisphere and recorded the 4th decline in the index from the last 5 events. The index fell 1.5%, with powders posting similar losses while fats were mixed, and cheddar delivered another odd result.

SMP weakened at this event, the average price falling US$60/t to US$2,769/t. Fonterra MH C2 lost US$80/t to US$2,760/t, with a small rise in the forward curve. WMP lost 2% on average or US$65/t to US$3,264/t. Fonterra Regular C2 lost US$55/t to US$3,240/t (US$45/t under last week’s Pulse result), with forward line for later deliveries rising to US$3,345/t for C5 which had a similar loss.

Fats were mixed at this event with a moderate gain for butter while AMF was weaker. Butter gained 3.7% or US$177/t on average to US$4,922/t, with stronger improvements for later contracts. C2 added US$175/t to US$4,920/t. AMF lost 2.5% or US$139/t on average to US$5,447/t with smaller losses in later contracts to leave a rising forward curve. C2 lost US$159/t to US$5,413/t.