After four large increases in a row, the Global Dairy Trade auction has gone against predictions to record a fall overnight, following a record high earlier this month.
Prices in the latest auction settled on a 0.9 per cent drop across the board; however this is still the second highestindex recorded in the past decade.
Whole milk powder (WMP) - which has the biggest influence on Fonterra's farmgate milk price - slipped 2.1 per cent to an average US$4596/MT, following a 5.7 per cent increase at the previous auction.
Meanwhile skim milk powder - Fonterra's second biggest reference product - went in the other direction to lift 1.6 per cent to an average US$4545/MT - a mere US$51 behind WMP.
Butter softened slightly - down 1.8 per cent to an average US$6958/MT, but still US$2000 above where it was sitting six months ago.
Lactose, followed suit with a 0.6 per cent dip to an average US$1618/MT.
Meanwhile cheddar lifted slightly - up 0.3 per cent to an average US$6412/MT, after a 10.9 per cent surge last time. Again this is more than US$2000 up on six months ago.
Anhydrous milk fat also lifted slightly, with a 0.4 per cent increase to an average US$7111/MT.
