Dairy product prices have fallen at the Global Dairy Trade auction, declining for the third time in four auctions, amid concern about extra supply.
The GDT price index slid 1.6% from the previous auction two weeks ago to $4475.
Some 32,768 tonnes of product was sold, up from 26,688 tonnes at the previous auction.
Whole milk powder rose 1.3% to $4244 a tonne.
“The market struggled to absorb the extra volume of product available on GDT which does not bode well for the coming months when offer volumes continue to lift in line with the seasonal lift in New Zealand’s milk supply,” Agri HQ dairy analyst Susan Kilsby said.
At the latest GDT auction, butter fell 4.9% to $7730 a tonne, while anhydrous milk fat dropped 4.9% to $8459 a tonne.
“While milk-fat prices fell at the latest GDT event, they are still quite high historically,” Ms Kilsby said.
“The falls in the price indices at the August 1 event do indicate that buyers are starting to resist paying such high prices for milk fats.” The New Zealand dollar last traded at 100.58c at 2.30pm in New York, compared with 101.5c at 5pm in Wellington the previous day. NZN