Prices of dairy products fell for the first time in three sales on Fonterra's GlobalDairyTrade platform, with declines in most of the products on offer.
The GDT-TWI Price Index fell 1.6 per cent compared to the last sale two weeks ago. The average winning price declined to US$3,688 a metric tonne from US$3,737 a tonne in the December 6 sale. The price of whole milk powder declined 1.5 per cent to US$3,589.
Prices of commodities have declined through much of December amid speculation global growth is faltering in the face of Europe's debt crisis. The Thomson Reuters/Jefferies CRB Commodity Index of 19 commonly traded commodities touched a two-month low last week. Still, Fonterra this month raised its forecast payout to farmers for 2012, citing a 'modest' recovery in prices over the past two months.
The average winning price for skim milk powder declined 3.2 per cent to US$3,312 a metric tonne. Among other products on offer, anhydrous milk fat rose 4.8 per cent to US$4,183 a tonne while butter milk powder dropped 3.8 per cent to US$3,280 a tonne.
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Cheddar climbed 1 per cent to US$3,601 a tonne and milk protein concentrate dropped 6.7 per cent to US$5,860 a tonne. Rennet casein declined 6.9 per cent to US$8,122 a tonne.
There were 119 winning bidders over 10 rounds, out of 156 participating bidders. The number of qualified bidders rose to 504 from 491 in the last sale two weeks ago.