This week’s GDT event #301 posted another strong result that reflected extremely tight global supplies of dairy ingredients and products. The event index didn’t quite match the previous event or the fervour in milk powder futures on the SGX, but the 4.1% increase was solid.
SMP lifted 2.2% or US$88/t on average to US$4,051/t, the 13th increase in this rally. Fonterra MH C2 gained US$80/t to a neat US$4,000/t, but later prices were stronger. WMP rose 5.8% or US$242/t to US$4,324/t, with solid gains across contracts. Fonterra Regular C2 added US$245/t to US$4,290/t, with later price gains lifting the forward curve to US$4,370/t for C5.
There were again mixed changes in fat prices, as the price of butter remained stronger, adding US$201/t on average to US$6,359/t, with solid gains across contracts. C2 added an average of US$185/t to US$6,360/t for the 9th consecutive gain. AMF again posted a smaller increase on average and the outcome was mixed across contracts. AMF added US$80/t to average US$6,800/t, but posted another odd set of results with C2 averaging a US$15/t gain to US$6,745/t.
Cheddar added US$138/t to average US$5,684/t. NZ young cheddar C2 added US$90/t to end at US$5,615/t. Lactose came back to the event for a solid 12.7% or US$177/t lift since the previous showing in the week before Christmas to end at US$1,567/t.