Prices eased again at the second Global Dairy Trade auction for the new season, with a 1.3 per cent drop from the previous event.
Whole milk powder - which has the biggest influence on Fonterra's farmgate milk price - was also down 1.8 per cent to an average US$3997/MT, while skim milk powder - Fonterra's second biggest reference product - dropped 1.7 per cent to an average US $3356/MT.
Butter softened 1.7 per cent to an average US$4612/MT, while cheddar rose 0.2 per cent to an average US$4328/MT.
Butter milk powder was not offered at this event.
Anhydrous milk fat rose 0.6 per cent to an average US$5687/MT, while lactose was up 0.4 per cent to an average US$1240/MT.
A total of 21,522 MT of product was sold to 160 successful bidders.
Fonterra started the 2021/22 season with a rise in the range from $7.30-$7.90 per kg to $7.25-$8.75.
The midpoint of the range, off which farmers are paid, also rose from $7.60 per kg to $8 per kg.
Fonterra chief executive Miles Hurrell said he wasn't too worried by another drop in the GDT.
"We shouldn't be concerned," he told The Country's Jamie Mackay.
"We always expected the market to come off its peak at some point, [it's] maybe a little bit sooner than we thought, we're just wanting to see now, how long will it hold on at these levels - and will it come off even further."
There was good support out of China and the Middle East, but Africa was "a little bit quieter," Hurrell said.
"Maybe that is a reflection of some of the buying power when you get above four thousand, it starts to peel away."
Hurrell also wasn't bothered by a change in currency, which had dropped to 0.72USD.
"It has cooled, but of course, you look at last year it was 68 … we just take it as it comes, it's one of those things that's outside our control, so let's not get too concerned about it."
Also in today's interview: Hurrell talked about Fonterra's share prices.