Average prices of dairy products extended their slide for a seventh straight sale at Fonterra's latest online auction, to reach a 13-month low.
The GDT-TWI Price Index fell 2.1 per cent, according to results posted on the globalDairyTrade auction website. The average winning price fell to US$3,499 a metric tonne, the lowest since August last year, when prices reached US$3,080 a tonne.
New Zealand's terms of trade reached a 37-year high in the second quarter, partly reflecting exports of dairy products though Fonterra has been predicting prices would come off their peaks amid volatile global markets and increased Northern Hemisphere supply.
Earlier this month the cooperative reiterated its forecast for a lower farmer payout in 2012 from this year's record amount.
Whole milk powder rose 1.1 per cent to US$3,345 a tonne in the latest sale. Skim milk powder dropped 6.2 per cent to US$3,230. Anhydrous milk fat sank 11 per cent to US$3,846 a tonne and milk protein concentrate rose 6.7 per cent to US$6,692 a tonne. Rennet casein fell 7.6 per cent to US$8,828 a tonne. Butter milk powder rose 0.2 per cent to US$2,985 a tonne and cheddar gained 0.6 per cent to US$4,049 a tonne.
There were 133 winning bidders from 155 participants over 11 rounds. The platform has 417 qualified bidders, up from 387 at the last auction.