Skim milk powder, the second-largest reference product, was up 3.2% to US$3448 a tonne.
Prices for other products were mixed.
Butter fell 7.9% to US$5702 a tonne, and mozzarella dropped 3.1% to US$3850 a tonne.
Cheddar was up 1.1% to US$4798 a tonne, and lactose lifted 7.2% to US$1573 a tonne.
Buttermilk powder was not available at this event.
A total of 14,993 MT of product was purchased by 99 successful bidders.
In a note, NZX head of dairy insights, Cristina Alvarado, said milk powders showed relative resistance, though this was offset by a sharper-than-anticipated correction in milk fats.
“The scale of these declines exceeded forecasts and reflects persistent global supply availability combined with competitive pricing pressure, particularly from US CME butter, which continues to undercut international markets,” she said.
“European pricing remains relatively flat, supported by strong seasonal milk flows and steady cream availability, further reinforcing downward pressure on fat values.”
Alvarado said weakened demand for anhydrous milk fat, which fell 9.6% to US$6357 a tonne, highlighted the lack of urgency from buyers at current price levels.
She said that despite the seasonal decline in New Zealand milk production approaching, there was plenty of supply globally.
Who was buying had noticeably shifted, with North Asia re-emerging as the dominant buyer.
However, ongoing geopolitical tensions linked to the conflict involving Iran are contributing to elevated freight, insurance, and input costs.
“Disruptions around the Strait of Hormuz and sustained high oil prices are feeding uncertainty into buyer behaviour, with many opting to delay procurement in anticipation of improved cost conditions and clearer logistics,” Alvarado said.
“Overall, Event 402 reflects a market still navigating the interplay between sufficient supply, cautious demand, and external geopolitical pressures, with milk fats bearing the brunt of current downside risks.”
- RNZ
