Dairy product prices have fallen at Fonterra's GlobalDairyTrade auction, with whole milk powder declining amid an increase in supply.
The GDT price index retreated 0.6 per cent on Wednesday morning (NZT) from the previous auction two weeks ago. The average price was $US3593 ($NZ5030) a tonne. Some 19,292 tonnes of product was sold, down from 20,256 tonnes two weeks ago.
Whole milk powder decreased 0.8 per cent to $US3232 a tonne.
"Fonterra had increased its whole milk powder offer volumes ahead of this event as milk flows start to improve, so buyers are unlikely to feel as much urgency to secure product," AgriHQ dairy analyst Amy Castleton said.
Butter milk powder dropped 4.3 per cent to $US1959 a tonne, while anhydrous milk fat shed 3.2 per cent to $US6245. Butter slid 1 per cent to $US5280.
Cheddar rose 1.7 per cent to $US3759 a tonne, while rennet casein gained 2.2 per cent to $US5128. Skim milk powder rallied 5.5 per cent to $US2051.
"This strength was driven by higher prices for UHT grade product," Ms Castleton noted.
"Skim milk powder is running a bit short in New Zealand, but there is plenty of stock elsewhere in the world."
No prices were available for lactose.
The New Zealand dollar last traded at US72.94 cents as of 12.26pm in New York, compared with US72.26c at the previous close in Wellington.
There were 130 winning bidders out of 174 participating at the 22-round auction. The number of registered bidders rose to 529, up from 527 at the previous auction.