The falling value of the New Zealand dollar is offsetting some of the lower GlobalDairyAuction prices but not all of the gain will be captured in this season's payout.
Dairy prices were weaker than expected in the latest auction, falling 3.4%. The index is down 7.4% on an annual basis.
ASB senior rural economist Nathan Penny said the result was softer than indicated by futures pricing ahead of the auction, which had pointed to a modest rise.
The auction price fall was broad-based. Six of the seven products monitored by ASB posted falls. Anhydrous milk fat was unchanged.
The key product of whole milk power dipped 2.7% and was down 18.2% on the annual index.