GDT event #341 achieved gains in commodity prices, reinforcing the improved global sentiment in fat and protein markets with the index gaining 4.4%.

The demand for SMP was better than average – the best for some time – with the combined strength of Chinese and SE Asian buying enough to lift SMP an impressive 6.6% on average. Chinese involvement was well under half the sales, and SE Asian buyers also took just under 30%.

WMP prices lifted 4.8% on average, taking the C2 regular price close to US$2,900/t, on similar starting demand to the previous event, but bidding eked out to 19 rounds. The forward curve was pushed to US$3,000/t for C5 regular product. Chinese buyers accounted for less than half the purchases with SE Asia and Middle East again taking larger than usual tonnages.

AMF again achieved the better outcome of the fats.  The C2 contract almost made it to US$5,000/t with a 4% gain, with the largest sales into SE Asia. Butter made a smaller net gain, with the C2 contract price falling US$51/t but the other contracts were good enough to lift the average.

Cheddar prices reflected the competitiveness in the category, with a significantly weaker US short-term market (with cheddar barrels near US$3,400/t spot) likely influencing the outcome. Changes across contracts were varied but the average lost almost 5%.