Source: GDT
The auction sold 50,816 tonnes of product to 132 winning bidders.
WMP prices made the biggest gains in Contract 5 (+3.9%) and C3 (+3.5%), for shipment in March and January respectively. All other contracts also improved in price. The WMP forward price curve is sloping upwards, from an average of US$2470/t in C2 to US$2783/t in C6.
The latest result means that the WMP October futures contract on the NZX Dairy Futures Market will settle at US$2420/t, the average of Fonterra's C2 Regular WMP prices across both auctions this month. Prior to this auction, futures prices settled at US$2460/t, and prior to the October 1 auction, futures prices settled at US$2890/t.
SMP prices declined most in C2 (-4.3%) and C3 (-3.4%). The SMP forward price curve is sloping upwards, from an average of US$2423/t in C2 to US$2663/t in C6.
Prices of European SMP from Arla and Euroserum traded US$10 – 25/t above equivalent product from Fonterra. At the previous auction, Fonterra product commanded a US$65 – 85/t premium over Arla and Euroserum. The reversal is due to Fonterra's C2 medium heat SMP declining 4.8% this auction while Arla's fell 0.4% and Euroserum was lower by 1.8%.
The SMP October futures contract will settle at US$2450/t. Prior to both auctions this month, futures prices settled at US$2600/t.
AMF prices gained strongly in C2 (+11.9%), and improved in all other contracts by between 3.0 – 4.9%. The AMF forward price curve is upward sloping, from an average of US$3324/t in C2 to US$3461/t in C6. The AMF October futures contract will settle at US$3098/t.