"New Zealand milk production data released late yesterday may have contributed to buyer apathy," Amy Castleton, AgriHQ dairy analyst, said in a note. "The more informed international buyers would be aware that New Zealand typically has surplus pasture during November."
"Therefore the impact of the dry conditions will only start to be reflected in milk volumes from December on as this is when the quantity and the quality of the pasture available generally started to fall," according to Castleton.
At the latest GDT auction, cheddar sank 7.9 percent to US$3,389 a tonne, while anhydrous milk fat shed 6.7 percent to US$6,392 a tonne.
Rennet casein dropped 6.3 percent to US$4,506 a tonne, while skim milk powder declined 4.8 percent to US$1,675 tonne, and butter gave up 2.3 percent to US$4,474 a tonne.
No prices were available for lactose. Buttermilk powder was not offered at this event.
The New Zealand dollar last traded at 69.87 US cents at 1.06pm in New York, compared with 69.95 US cents at 5pm in Wellington the previous day.
There were 139 winning bidders out of 167 participating at the 13-round auction. The number of qualified bidders fell to 509, down from 563 at the previous auction.
- BusinessDesk