This week’s event provided an interesting set of outcomes. The index lost 1.3%, weighed down by the weaker WMP (worse in some contracts), a moderate loss for AMF and the slump in cheddar.

Despite a little more product coming on in the next few events, SMP prices continued to firm in line with the tone in the EU, adding 0.8% or US$36t on average to US$4,276/t. Fonterra MH C2 added US$100/t to US$4,345/t, but the forward curve weakened to a little above US$4,200/t by C5. WMP was essentially flat, minor losses around the main C2 contract which shed just US$15/t, to US$4,105/t, with small mixed changes across contracts, and premiums for instant product seem to have normalized.  

Butterfat prices went is different directions. Butter continued to rebuild after the heavy falls in April, with demand again much higher than average on the small tonnage, adding 2.4% or US$145/t on average to US$6,213/t. AMF lost 4.6% on average or US$288/t to sink US$300/t below the butter price at US$5,913/t with consistent losses across contracts. The C2 contract ended at US$5,950/t.

Cheddar prices seem to have been driven by a weaker US market and crashed on average by $490/t to $4,875/t. NZ young cheddar C2 was again not traded, but C3 to C5 ended near 4,800/t.