Photo: 123RF
Dairy prices have fallen again in the fortnightly global auction overnight.
The average price at the Global Dairy Trade auction fell 2.4 percent to US$3768 a tonne, the sixth consecutive fall.
It follows the 1.4 percent drop in the previous auction.
The GDT Price Index was at its lowest level since September 2024.
The price of wholemilk powder, which strongly influences payouts for local farmers, fell 2.7 percent to $3503 (NZ$6669) a tonne.
Butter prices fell more than 4 percent, while cheddar prices fell 6.6 percent, and skim milk powder was flat.
NZX head of dairy insights Cristina Alvarado said the auction result was broadly in line with expectations.
"The result reflects a market weighed down by abundant milk supplies from New Zealand, Europe, the United States and Argentina, while demand has softened following heavy buying earlier in the season," Alvarado said.
"With product deliveries now well aligned to the Christmas, New Year, Chinese New Year and Ramadan periods, buyers appear content with existing coverage, leading to reduced participation and lower clearing prices."
Wholemilk powder fell for the fifth consecutive auction, with buyers purchasing on a "hand-to-mouth basis" rather than building up their inventories.
Alvarado said North Asia (China) demand was dominant in the auction.
She added that the global butter market was "oversupplied" with Europe and the US reporting strong production and exporting aggressively.
She said US butter exports were up 208 percent year-on-year.
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