The dairy derivatives market had signalled a further 1.7% drop in WMP prices but the regular grade WMP to ship in September actually gained 17%, boosted by a lift in the number of bidders from north Asia.
It is likely Chinese bidders were buying medium-term cover because prices for August, December and January delivery fell, AgriHQ analyst Amy Castleton said.
“Buyers are relatively comfortable in the short term, and as there is a possibility that prices will decrease they will be unwilling to purchase product too far out.”
Skim milk powder had a minimal increase of 0.8%.
Medium heat SMP to ship in September lifted 3.4%, against expectations. The derivatives market expected a 4.4% fall.
European SMP prices also lifted, mostly averaging US$1725/t, except for product from Denmark.
Prices for butter, anhydrous milk fat, cheddar and casein dropped.
Butter plummeted 8.1% overall. Unsalted butter to ship in September fell 8.7%, reaching a price of US$4930/t. The derivatives market had expected a flat result for butter prices. The decline makes Oceania the cheapest source of butter.
AMF prices fell 5.2%. Regular grade AMF to ship in September dropped 6.7%. The derivatives market had expected a 1.7% lift in that grade and contract of AMF
.
